1/31/2024 0 Comments Short squeeze stocks listIn other words, retail traders were buying GME in waves, and that caused spikes in its stock price and short squeezes from hedge funds that need to cover their short positions. Some retail traders on WallStreetBets or WSB, which is a subreddit on the Reddit forum, try to take on these hedge funds by taking opposite positions. GameStop was a highly shorted stock by many hedge funds. GME, EXPR, KOSS were some of the wild stocks that had gone up recently partly because of a short squeeze. When its stock price rose tenfold, short traders got crushed because of short squeezes. Tesla was a highly shorted stock in 2020. ![]() A stock with a high short interest means investors are pessimistic about the company and think that the current stock price is overvalued.Ī short squeeze occurs when stocks jump abruptly higher and force traders who are shorting the stock to cover their short positions when these short traders have to buy the stock to cover their positions, which in term drives the stock prices even higher. Sometimes, when a stock goes up too fast in a very short period of time, it attracts a large amount of short interest. When a stock has a high short interest, it means a lot of traders are betting the stock will go down from its current price. Short interest in stocks is the number of shares that have been sold short by traders and these positions have not been covered or closed out. ![]() When a trader establishes a short position, he borrows the shares from his broker. When a trader shorts a stock, he bets the stock would go down, and he makes money when the stock drop. They borrow shares and sell them, with the intent of buying them back at lower prices. When a trader buys a stock, he makes a profit when the stock rises. If traders think a stocks price is going lower, they can short the stock. To get intraday penny stocks update (every 5-10 minutes), please signup for a free account.
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