short squeeze

(redirected from Short Squeezes)

Short squeeze

When 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

A situation in which a rapid increase in demand coupled with a small supply causes a stock price to rise significantly. This occurs most commonly in small companies with relatively few shares outstanding.

short squeeze

The pressure on short sellers to cover their positions as a result of sharp price increases or difficulty in borrowing the security the sellers are short. The rush to cover produces additional upward pressure on the price of the stock, which then causes an even greater squeeze. Also called squeezing the shorts.
References in periodicals archive ?
The next of several short squeezes is expected to begin when shares of SMKG close above $0.
Today's Lists: daily updated lists of the biggest winners and losers, the latest activist situations, analyst downgrades, short squeezes, inexpensive low-priced stocks, and many other portfolios.
On Tuesday, 33 Consensus names rose on more than a 50% increase over average volume, with the Internets and short squeezes such as Cal-Maine (NASDAQ:CALM), Eresearch (NASDAQ:ERES) and Taser (NASDAQ:TASR) leading the way, while the indices marked time.