Downtick
A transaction on an exchange that occurs at a price below the previous transaction.
In order for a downtick to occur, a transaction price must be followed by a decreased transaction price. This is commonly used in reference to stocks, but it can also be extended to commodities and other forms of securities. Investopedia Says:
For example, suppose stock ABC previously traded at $10. If its next trade occurs at a price below $10, then ABC will be on a downtick. Related Terms:
Commodity
Security
Short Exempt
Stock
Trade
Uptick
Uptick Rule |