tick test

Tick Test

A temporary suspension on trading on a security in which trading is allowed to continue but only in certain directions. For example, if the security is falling dramatically, an exchange may put in place a tick test only allowing trades for a higher or the same price. Likewise, if the security is rising unsustainably, the tick test may only allow lower or the same prices on trades. Tick tests are designed to reduce volatility in the market. See also: Trading curb.

tick test

A test to measure the extent to which a floor trader has stabilized security prices by trading against market trends, such as the extent to which transactions have been made against the trend as measured by purchases on downticks and sales on upticks.