Uptick and Uptick Volume

What is an uptick?

An uptick is a trade executed at a higher price than the immediately preceding trade (sometimes called a plus tick). For most U.S. stocks trading above $1, the minimum tick size is $0.01, so a move from $9.00 to $9.01 is an uptick; a move to $8.99 is a downtick.

Note: tick sizes vary by exchange and instrument.

How upticks form

Upticks reflect buying pressure: buyers raise bids or sellers accept higher offers. For example, if a stock trades down to $8.80 and selling pressure eases, a buyer bidding $8.81 who gets filled produces an uptick relative to the previous $8.80 trade. Conversely, persistent selling can drive prices lower without any upticks until buyers step in.

Related terms

• Zero uptick: a trade executed at the same price as the immediately preceding trade, but higher than the trade before that.
• Uptick volume: the number of shares traded on upticks (see below).
• Downtick: a trade at a lower price than the previous trade.

Uptick volume and net volume

Uptick volume is the total shares traded while a security is on upticks. Traders often compare uptick volume to downtick volume to compute net volume (uptick volume minus downtick volume). A rising share of uptick volume can signal growing bullish momentum and help confirm a new upward trend.

Regulatory background: the uptick rule and its alternatives

• Historical uptick rule (1938–2007): Required short sales to be executed only on an uptick. It aimed to prevent short sellers from accelerating a falling stock by allowing shorting only when the price was moving up.
• Repeal and concerns: The rule was repealed in 2007; some market participants link its removal to increased volatility during the 2008–2009 market crisis.
• Alternative Uptick Rule (2010): The SEC implemented a circuit-breaker style rule that restricts short selling on a stock for the remainder of the day and the following day if that stock falls 10% or more in a single trading day. While less broad than the original rule, it activates during extreme intraday declines to help stabilize markets.

Downtick-uptick rule (Rule 80A)

Rule 80A was an NYSE restriction designed to slow certain index or program trading during large market moves by flagging and limiting trades. It was abolished in 2007.

Example

If Stock ABC trades at $15.50 and buyers push the next trade to $15.60, that transaction is an uptick. If 10,000 shares trade at $15.60 while fewer shares trade on downticks, uptick volume and net volume indicate bullish pressure.

Upticks in bond markets

An uptick in bond yields means yields (returns) are rising and bond prices are falling. The concept of upticks and downticks still applies, but the interpretation relates to yield changes rather than equity prices.

Bottom line

Upticks are simple, transaction-level indicators of rising price momentum. Traders use uptick volume and net volume to gauge buying strength and validate trends. Regulatory rules around upticks—especially those governing short selling—have evolved to balance market liquidity with protections against destabilizing selling pressure.