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Short squeeze |
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Short squeezeSituation in which those who are short cannot repurchase their contracts, except at a price substantially higher than the value of those contracts in relation to the rest of the market.Short squeezeWhen a lack of supply tends to force prices upward. In particular, when prices of a stock or commodity futures contracts start to move up sharply and many traders with short positions are forced to buy stocks or commodities in order to cover their positions and prevent (limit) losses. This sudden surge of buying leads to even higher prices, further aggravating the losses of short sellers who have not covered their positions.Short squeeze Similar MatchesSqueezeSqueezePeriod when stocks or commodities futures increase in price and investors who have sold short must cover their short positions to prevent loss of large amounts of money. |
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