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havnagoodtime

08/29/20 6:06 PM

#145194 RE: TenKay #145193

That’s not what short VOLUME is.



When addressing that topic here, this disclaimer needs to be added >>

I can explain it to you, but I can't understand it for you

gimmee greenbacks

08/29/20 6:36 PM

#145195 RE: TenKay #145193


Short Volume is a data set that can be used to understand investor sentiment. When an investor makes a short sale, they do so with the belief that a security will decline in price. If the short sale volume increases as a percentage of the total volume, then that suggests a bearish (negative) sentiment by the market. If short sale volume decreases as a percentage of total volume, then that suggests a bullish (positive) sentiment.

“ Short Volume
Total number of short shares traded on the major US markets each day “

“ Short Volume Ratio
Total number of short shares traded divided by the total shares traded each day (lower chart) “

https://fintel.io/ss/us/v



In “naked” short selling the seller does not borrow the stock and as a result fails to deliver the stock to the buyer at settlement.

The fail to deliver (FTD typically occurs three business days after the naked short sale due to the “T+3” settlement used in the US. Two possible reasons for intentionally engaging in naked short selling are: (i) to short sell stocks that are difficult or impossible to borrow; and (ii) to conduct manipulative “bear-raids” on stocks. When borrowing costs are high, market makers sometimes choose not to borrow and instead naked short sell.6 In such cases naked short selling, then failing to deliver is economically equivalent to borrowing shares at a zero-fee zero-rebate equity loan plus the expected cost of being forced to buy back the stock and deliver it (a process called “buying-in”). In difficult-to-borrow stocks, this amount can be less than the cost of borrowing. Critics of naked short selling, and many companies that claim to have been targets of manipulative selling attacks argue that naked short selling can be used to conduct “bear-raids” because naked short sales artificially increase the supply of shares in the market.7 Because naked short sellers do not borrow the stock they can theoretically sell an unlimited volume of stock into the market, driving down a share price. Traditional short sellers, on the other hand, are limited by the amount of stock they can locate to borrow, which can become limiting as the level of short interest becomes large.

https://www.researchgate.net/publication/228260887_Naked_Short_Sales_and_Fails_to_Deliver_An_Overview_of_Clearing_and_Settlement_Procedures_for_Stock_Trades_in_the_US

https://otcshortreport.com/company/VYST





VYST