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I am learning about tick-sensitive orders. I know that there are two kinds of tick-sensitive orders:

  1. Buy downtick order: can be filled only on a downtick or zero downtick price.

  2. Sell uptick order: can be filled only on an uptick or zero uptick price.

However, in Trading and Exchanges: Market Microstructure for Practitioners by Larry Harris, the following question appears as an exercise (chapter 4, page 88):

Why are there no buy uptick and sell downtick orders?

Indeed, why? I've been thinking about this for some time now, and I can really figure it out. As far as I can understand, tick-sensitive orders are not replaceable with regular limit orders or market orders, so why don't "buy uptick" and "sell downtick" orders exist?

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  • You are aware that in many exchanges a great deal of order types exist you are not aware of? And that the rest can be easily simulated by a colocated trading system? – TomTom Aug 3 '20 at 14:54

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