What is the SSR rule in trading?

Asked by: Theodore Kilback  |  Last update: April 16, 2025
Score: 5/5 (54 votes)

Short sale restriction is a rule that came out in 2010 and it's also referred as the alternate uptick rule, which means that you can only short a stock on an uptick. This is kind of an unusual thing when you first think about it. It restricts the ability to short a stock as it's dropping down.

What is the SSR rule?

© 2025 Millionaire Media, LLC. The short sale rule prevents traders from short selling a stock when it's experiencing significant downward momentum. The SSR, also known as the uptick rule, requires that the short sale order is placed at a price higher than the current highest bid.

What are the rules of SSR?

Considerations When Trading SSR Stocks

Once the Short Sale Rule is triggered, short selling of that stock at the bid is prohibited for up to two market days. Traders can still short sell the stock by paying a price above the bid, but doing so is more costly.

What is the 10% rule for short selling?

Rule 201 is triggered for a stock when the stock's price declines by 10% or more from the previous day's close. When a stock is triggered, traders can only execute short sales of the stock above the National Best Bid (NBB) price.

What triggers SSR?

The SSR is triggered when a stock falls 10% from its previous close. At any point in the day if a stock hits that 10% threshold the Uptick Rule is activated and prevents traders from shorting at the bid price for that day (and the following trading day).

Short Sale Restriction (SSR)

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What does SSR stand for?

Definition of 'SSR'

or S.S.R. Soviet Socialist Republic.

What is the rule for short selling?

Under the short-sale rule, shorts could only be placed at a price above the most recent trade, i.e., an uptick in the share's price. With only limited exceptions, the rule forbade trading shorts on a downtick in share price. The rule was also known as the uptick rule, "plus tick rule," and tick-test rule."

What is the 2.50 rule for shorting?

The $2.50 rule is a rule that affects short sellers. It basically means if you short a stock trading under $1, it doesn't matter how much each share is — you still have to put up $2.50 per share of buying power.

What is the 50 30 10 rule for selling?

A good way to estimate used stuff's resale value is with the 50-30-10 rule, which states: Near-to-new items should be sold for 50 percent of their retail price; slightly used items at 25-30 percent of retail; and well-worn items at 10 percent of retail.

How long does SSR last?

How Long Does SSR Last? The short-sale rule lasts from the moment it was triggered by a price drop of more than 10% from the previous day until the closing of the next market day. If it has been triggered on a Monday, it remains in effect until the opening of the market on Wednesday.

How does the SSR work?

SSRs turn ON/OFF signals, currents, or voltages electronically by the operation of these electronic circuits. Mechanical relays have contacts and use electromagnetic force to mechanically open and close the contacts to turn ON/OFF signals, currents, or voltages.

What are the steps of SSR?

development of SSR markers can basically be di- vided into the following stages: (i) prior knowledge of nu- cleotide sequences in which SSRs occur; (ii) design of oligonucleotides (or primers) complementary to the regions flanking the SSR; (iii) validation of primers by PCR and electrophoresis of the product of the ...

What are the requirements for SSR?

Indian Navy SSR Eligibility 2024 FAQs

A candidate must have qualified the 10+2 degree with a minimum of 60% percentage (for AA) in Maths and Physics and any one subject from Chemistry/Biology/Computer Science from the Boards of School Education recognized by MHRD, Govt.

What is the SSR method?

The SSR method is used to obtain a resolution enhancement by combining several images containing slightly different perspectives of the same scene. MC simulations are a useful tool in the development of new imaging devices, as well as in the assessment of new reconstruction methods.

What is the SSR stock sales ratio?

How SSR works. Calculation: The SSR is calculated by dividing the average inventory value by the average daily, weekly, or monthly sales. The inventory value can be measured in cost or retail price, depending on the specific needs of the analysis.

What does SSR mean in trading cards?

SSR is an acronym for Specially Super Rare. Its an item that can't be obtained by normal methods. They are usually introduced in games for a limited time, or can only be obtained after completing a special task, or sold through a special seasonal sale.

What is the 80 20 rule sales?

You may think of the 80-20 rule as simple cause and effect: 80% of outcomes (outputs) come from 20% of causes (inputs). The rule is often used to point out that 80% of a company's revenue is generated by 20% of its customers.

What is the 60 40 rule in money?

It says you should aim to keep 60% of your holdings in stocks, and 40% in bonds. Stocks can yield robust returns, but they are volatile. Bonds provide modest but stable income, and they serve as a buffer when stock prices fall. The 60/40 rule is one of the most familiar principles in personal finance.

What is the 10% rule in trading?

So, let's talk about taking on risk responsibly. So, when you're ready to invest, you want to implement something I call the 10% Risk Rule. And this basically is just limiting your risky investments to no more than 10% of the total money you have invested.

What is the T 2 rule in trading?

T+2 means that when you buy a security, your payment must be received by your brokerage firm no later than two business days after the trade is executed. When you sell a security, you must deliver to your brokerage firm your securities certificate no later than two business days after the sale.

Can a stock be shorted twice?

Yes, you can short the same stock multiple times. Short selling is a strategy where an investor borrows shares of a stock from another investor and sells them, hoping to buy them back later at a lower price and return them to the original owner.

What is the free riding rule?

If an investor buys and sells a security before paying for it, the investor is “freeriding” which is not permitted under the Federal Reserve Board's Regulation T and may require the investor's broker to “freeze” the investor's cash account for 90 days.

Why is short selling illegal?

Key reasons for its prohibition or restriction in some jurisdictions include concerns about market stability and the prevention of market manipulation. Short selling can amplify market downturns, particularly during periods of economic stress, leading to panic selling and destabilizing financial markets.

How do you short sell for dummies?

Short Selling for Dummies Explained

Rather, it typically involves borrowing the asset from a trading broker. You then sell it at the current market price with the promise to buy it back later and return it to the lender. If the asset depreciates, you can make a profit as you will keep the difference.

How long can you keep a short sell?

This is the opposite of a traditional long position where an investor hopes to profit from rising prices. There is no time limit on how long a short sale can or cannot be open for. Thus, a short sale is, by default, held indefinitely.