The Zero Uptick is a desirable outcome for investors when trading in securities. It is a trade without any price change in the security, occurring instantly based on the criteria of the two prior trades. Short-sellers found this to be a desirable outcome as it allowed them to meet the Uptick Rule that was put in place by the Securities and Exchange Commission (SEC).

The Uptick Rule was abolished by the SEC in 2007, leading to the ability of short-sellers to make trades with zero uptick and no impacts on the price of the security. The main purpose of the Uptick Rule, which was in place for almost 80 years, was to protect against manipulation of the stock market and price manipulation through short-sellers who had negative sentiment towards the security. By having to enter their orders with a price higher than the prior trade, it discouraged the practice with the hope of more stable stock prices.

The purpose of the Zero Uptick was to be an advantage for investors that allowed them to avoid the Uptick Rule, but still had the benefit of trading with a price that doesn’t change. While this did give an advantage to investors, it does not mean that stock prices are less volatile. In fact, it could be argued that by taking away the Uptick Rule, stock prices have become even more unpredictable.

Overall, the Zero Uptick is a favorable outcome for many investors as it allows them to make trade with no price change and a short-seller can use this to enter orders without being restricted by the Uptick Rule. Before trading in securities, it is important to understand the advantages and risks associated with the Zero Uptick and the Uptick Rule in order to make the most well-informed decision on how you want to trade.