Zero downtick refers to a transaction made at the same price as a preceding trade, but at a price lower than two transactions previous. Also, known as zero minus tick. |
Written descriptions of zero downticks are far more complicated than the actual concept. As an example to of a zero downtick, if trades are executed at 53, then 52 and then 52 again - then the last trade at 52 was a zero downtick.
One of the greatest disadvantages of speculating in the stock market is the rule that prevents shorting shares on a downtick. Share traders are not able to short a stock during a downtick or zero downtick - only after an up-tick of price in the share. Such restrictions on shorting and profiting from asset's decline do not exist in the FX Market.
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