Aurora Cannabis Inc (ACB)

[Rule_62]

Daily short volume is not the same as short interest. Before anyone who does not understand the difference attempts to invest in Aurora based on daily short volume numbers, a little education might be helpful.

Here's an excellent post that's a bit of a primer on the subject that was made on another Investor's Hub board from a number of years ago. It helps explain what creates the bulk of short volume on a typical day.

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=57101068

Translation:

1. The MM gets an order to sell 100 shares

2. The MM sells the 100 shares before he purchases them from the seller. This is a short sale and the first leg of the transaction. The volume is reported as a short sale.

3. The MM then purchases the 100 shares from the seller. This is the second leg of the transaction and is a long sale. Because the volume was already reported in the first leg, the volume is not reported in the second. Why? Because it's two parts that make up a single trade in this situation.

In effect, the 2nd leg cancels out the short in the first leg, but only the first leg gets reported. Those who don't understand look at the daily short numbers and think that the short interest is climbing, however, the daily short volume is typically not at all indicative of what is occurring with the short interest. Yes there are exceptions, however, understanding what is typically occurring will save individuals from acting on false assumptions.