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You may have heard of the term “short squeeze” in the past – but didn’t know what it meant. I’m here to tell you what it is and how you can capitalize and profit from a short squeeze.

What is a short squeeze?

There are two players in the market. There are the “longs” and the “shorts” which are equivalent to buyers and sellers.

Buyers are looking for the stock to head higher while Sellers are looking for the stock to head lower.

Sellers typical are borrowing shares from their brokers – then will look for the stock to head lower – they’ll purchase it back at a lower price and pocket the difference. These are called “short-sellers.”

#shortsqueeze #sellingstocks #shortingstock #shortingstocks #stocksellers #stockmarket

Posted at: https://tradersfly.com/blog/what-is-a-short-squeeze/

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Tradesfly is focused on me sharing my experience and knowledge about trading options. Although we include videos related to other areas of trading, the primary focus is trading options. If you are serious about learning to trade options for selling premium, creating spreads, be sure to subscribe to the channel and join our discord group.

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All of the stocks mentioned in this video along with any other videos we have are opinions and not investment, financial or legal advice. These videos are for general education, information, and entertainment. Do your own due diligence and consult with a registered financial advisor before taking any position since everyone has a different risk tolerance.

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