Definition of 'Short Squeeze' A situation in which a lack of supply and an excess demand for a traded stock forces the price upward. During a short squeeze, individuals holding short positions are typically forced to purchase shares in situations where the price increases rapidly, in order to exit their short position. Short squeezes occur more often in smaller-cap stocks with small floats.
Investopedia explains 'Short Squeeze' If a stock starts to rise rapidly, the trend may continue to escalate because the short sellers will likely want out. For example, if a stock rises 15% in one day, those with short positions may be forced to liquidate and cover their position by purchasing the stock. If enough short sellers buy back the stock, the price is pushed even higher.
Things that are equal to the same thing are also equal to one another (Transitive property of equality). If equals are added to equals, then the wholes are equal. If equals are subtracted from equals, then the remainders are equal. Things that coincide wi
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.