Shorting a Crossed/Locked Market

K

Klaorman

When a stock's bid is on a downtick, shorting is not possible. However, I've seen many times where the downward momentum slows and people on ISLD start crossing/locking the market, but the actual bid is still on a downtick. Am I able to short into the ISLD crosses/locks? Of course, I'd rather wait for the small rally to start topping before I short, but I'm curious as to whether it's possible to short in the above situation.
 

the answer is no, you cannot short a nasdaq stock at or below the bid a downtick under any circumstance.. the amex does allow shorting on downticks.. and on the NYSE you can simply create a hedge box..

keep in mind that market makers are exempt from the downtick rule..

hope this helps..

-qwik
 
But I'm saying ISLD traders are bidding above the official bid, which is still on a downtick. For example, the bid is 49.99 and on a downtick, the ask is 50.00, and I see ISLD bids at 50.01. Can I short to the ISLD bids?
 
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