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This isn't quite the same as shorting on a downtick, but you can create an
uptick by going 1/32 or 1/16 above the bid. If the trade warrants it you
will still make a profit.
Ketayun Rustom
Harley Meyer wrote:
> I have never heard of a cue for shorting stocks. The real problem might
> be borrowing the stock to short at that time. Here is how the rule works
> for shorting stocks. You can only short on an up tick. So let's say you
> get an up tick so you place an order to sell short 100 shares. But let's
> say at the same time another trader also shorts 100 shares of the same
> stock. Now to the best of my knowledge the rule will give only the first
> trade to the market after the uptick the short sale if the next trade
> after the short sale is a down tick. The NYSE will hold the second
> traders short sale until another uptick occurs. So to some degree there
> can be a back log of short sale orders on the NYSE waiting to be filled.
>
> NASDAQ is different because the uptick rule is on the bid and not the
> last trade like the NYSE. On the NASDAQ if you short on and uptick you
> get to short as long as there is an uptick. If not on an uptick while
> you place your order your order will not even be held in the system.
>
> Harley
>
> Stephen Gibson wrote:
>
> > Over the last few days, the market has given us many opportunities
> > for shorting stocks. Sometimes, it isn't easy.
> >
> > For example: today I placed an order to short Gateway 2000 (GTW)
> > at the market. After giving a market order to my broker (REGAL),
> > I waited for a fill. For those of you who are new to trading stocks,
> > the rules say the stock must have an UP tick before an order to short
> > can be filled. Gateway 2000 is a fairly liquid stock and trades more
> > than a million shares a day. I watched dozens of UP ticks go by over
> > several minutes. After 10 minutes, I called and was told by my broker
> > that I had not been filled yet. After still another 10 minutes
> > and more up ticks, I called and was told I still was not filled. So I
> > cancelled the order. I was told that shorts are placed in a 'cue' and
> > that there was a chance I might never be filled...ever! What?
> >
> > Question: Am I being told the truth?
> >
> > It's very hard to complain about slippage without a fill. 8-)
> > Steve...
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