Short squeeze

A short squeeze is a fast rise forced by short sellers buying back to cap losses, which pushes the price higher and forces out the next ones. It happens when the borrow runs out; on futures the same fuel builds when funds keep adding shorts while the index rises, and silver in 2021 is the commodity version.

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In the help centreSee the order types available on Mochatrade
  • Short sellingShort selling is selling a borrowed share to buy it back cheaper. The loss is open-ended if the price rises, the…
  • Long and short positionA long position profits when the price rises; a short position profits when it falls. On a contract on the price…
  • Short interestShort interest is the number of a stock's shares sold short and not yet bought back, published twice a month by FINRA.…
  • Market makerA market maker quotes a price to buy and a slightly higher price to sell all day and earns the spread. Since US prices…
  • Contango and backwardationContango is later futures months priced above nearer ones, the normal state when storage costs money; backwardation is…
  • Contract rolloverContract rollover is closing an expiring futures month and opening the next to stay exposed. Front at $85.00, next at…

Educational content only. Not investment advice. Leveraged products magnify losses as well as gains.

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