short squeeze


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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 ?
Palmer, who last weekend at the Curragh enjoyed a first Classic success with Covert Love in the Irish Oaks, followed by a Group 3 with Home Of The Brave 24 hours later, saddles the smart Short Squeeze in a race in which three of the seven declarations hail from the David O'Meara stable.
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Reuters reported that oil traders said the price spike had "many hallmarks of a classic short squeeze.
Traders cited Mideast demand, which prompted a short squeeze -- when a rise forces players to back off short-term bets a currency will fall.
With the addition of the new plaintiffs, the funds -- now 35 in number -- seek to recover more than US$2 billion dollars in losses suffered after Porsche SE triggered what The New York Times called "a short squeeze of historic proportions.
There was wide speculation about which investment companies had been caught out by the short squeeze, and many banking shares fell as a result.
As prices start to rise against these traders, a short squeeze condition could take this pair toward its old August 2008 high of .
Part of (Wednesday's rise) has to be a short squeeze,'' Jacob said.
SHORT SQUEEZE may bid for Grade One glory Down Under following a superb victory at Haydock Park under Liverpool jockey Martin Dwyer on Saturday.
Porsche released billions of Euros worth of shares into the short squeeze for its own profit.
As prices start to rise against these traders, a short squeeze condition coul take this pair toward its old August 2008 high of .