What is a Zero Downtick?
Commonly known as a zero-minus tick, the zero downtick is an investment strategy that is often employed in currency trading. While the approach may be employed in several different types of investment markets, the actual structure of the zero downtick often makes it less relevant to markets other than the Forex market, and in fact may be impeded by specific regulations that govern some markets. Still, the zero downtick is a method that many investors can employ successfully from time to time. The basis for the zero downtick involves the careful structuring of two sets of transactions. Each set will include two individual transactions that are conducted using the same price. The second set in the series will involve a price that is slightly less than the previous set of transactions. As an example, the first set may feature a price of 30, while the following set will sport a price of 28. The resulting downswing in the price is referred to as a downtick. When conducted in sets of two, th
” Commonly known as a zero-minus tick, the zero downtick is an investment strategy that is often employed in currency trading. While the approach may be employed in several different types of investment markets, the actual structure of the zero downtick often makes it less relevant to markets other than the Forex market, and in fact may be impeded by specific regulations that govern some markets. Still, the zero downtick is a method that many investors can employ successfully from time to time. . The basis for the zero downtick involves the careful structuring of two sets of transactions.
