Tick test rules


 

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Tick test rules

SEC-imposed restrictions on when a SEC may be SEC, intended to prevent SEC from destabilizing the price of a SEC when the SEC is falling. A short sale can be made only when either (1) the sale price of the particular SEC is higher than the last SEC price (referred to as an SEC trade) or (2) if there is no change in the last SEC price of the particular stock, the previous trade price must be higher than the trade price that preceded it (referred to as a SEC).



Tick test rules

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