Nexus ScreenerWhat Is SSR? The Short-Sale Restriction (Rule 201) Explained
SSR (short-sale restriction) is a rule that limits short selling in a stock after a big drop. It comes from SEC Rule 201, sometimes called the alternative uptick rule.
When it's triggered
SSR is triggered when a stock's price falls 10% or more below the previous day's closing price.
How long it lasts
Once triggered, it applies for the rest of that trading day and all of the next trading day.
What it changes
Shorting isn't banned. Short sellers can still sell short, but only at a price above the current best bid. They can't sell straight into buyers' bids to push the price down, so selling pressure from shorts eases.
Why traders watch it
- Some momentum traders watch SSR stocks for sharp bounces, since shorts are slower to add pressure.
- Short sellers need to know when their orders will be limited.
SSR doesn't make a stock go up. A stock under SSR can keep falling.
How Nexus Screener shows it
An SSR tag appears on stocks that traded 10%+ below the previous close today, or did so on the previous trading day. There's also an "SSR only" scan filter. Nexus works this out from prices; the exchanges' published list is the official record.