What is a Zero Plus Tick?
Also called a zero, a zero plus tick is a trade that occurs at the same price as the trade preceding it but higher than the last trade at a different price. A zero plus tick is the opposite of a zero .
How Does a Zero Plus Tick Work?
Let's say the first trade of the day for Company XYZis for 1,000 at $20 per share. The very next trade is for 2,500 shares at $22. The third trade is for 1,500 shares at $22 (the same price) The third trade is called a zero plus tick because that $22 trade is the same price as the previous trade but higher than the last trade that occurred at a different price (the $20 trade).
Although the bonds, commodities and other traded securities.is usually used in reference to , it can also apply to
Why Does a Zero Plus Tick Matter?
A zero plus tick suggests that a stock's price.is trending up and staying there. The SEC used to allow shorting only on upticks or zero plus ticks in order to prevent traders from jumping on the bandwagon to destabilize a