What does Short Selling Restriction (SSR) mean?

When a stock is in SSR it means the stock is in “Short Selling Restriction” (SSR) mode. An SSR is triggered when a stock is down 10% or more from the previous day’s close. In this case, regulators and the exchanges restrict short selling of the stock when its price is dropping. You can only sell short on the ask, you cannot sell short directly to the buyers (to the bid). It means that the priority for selling is for the sellers who currently hold positions (own the stock), not for the short sellers who are wanting to profit from the downward movement. If you want to sell short, you have to queue up on the ask side and wait for buyers to come to you. Real sellers, on the other hand, can accept bids from buyers and get rid of their positions. The SSR is designed to give the real sellers, who own the stock, a priority to sell over the short sellers in the market.

Therefore, when a stock is in SSR mode, you need to send your orders to sell on the ask, and then wait for an uptick so your orders get filled. One way to accomplish this is by using specific Hotkey buttons in the Montage window of your trading platform so that you can send a marketable limit order within a specified price range and then wait to get filled when the price of the stock moves in an upward direction.

For information on SSR Hotkeys, please see: https://forums.bearbulltraders.com/topic/173-das-trader-pro-faq/ Scroll down to Hotkeys and Hotkey Buttons > How to short stocks in SSR.