Uptick rule: Easy explanation

In this video, you will learn about the uptick rule. #uptickrule #stockmarket #wallstreetmojo #shortselling #circuitbreaker Chapters: 00:00 – Introduction 00:42 – What is the uptick rule? 01:36 – Features of rule 201 02:13 – How does the uptick rule work? 03:40 – Conclusion What is the uptick rule? The uptick rule is also referred to as the plus tick rule. It restricts stocks from being shorted at a lower price than their last traded price. For a trader to short the stock as per the uptick rule, they can do so only after the stock has moved at least one tick up, and then they can short it. (Explained in detail in the video) Features of rule 201 Circuit breaker Duration of restriction Securities covered Implementation How does the uptick rule work? The SEC got rule 201 in place to stop the market from crashing if the price declines too much. In short, its main aim is to maintain market stability and protect the confidence of investors in case the market gets attacked by sellers. We have taken an example in the video to understand better how the rule would come into play. So check out the example part in the video. This was all about the uptick rule. Subscribe to the channel, and don’t forget to give this video a like. ========================================================================== Subscribe to Our Channel – Youtube ► https://www.youtube.com/channel/UChlNXSK2tC9SJ2Fhhb2kOUw?sub_confirmation=1 LinkedIn ► https://www.linkedin.com/company/wallstreetmojo/ Facebook ► https://www.facebook.com/wallstreetmojo Instagram ► https://www.instagram.com/wallstreetmojoofficial/ Twitter ► https://twitter.com/wallstreetmojo