Can you help me understand why this important. Seems like it means that there are people who have "sold" a bunch of stock to clients, but are actually in possession of those stocks and are now holding the short stick?
Shorting = borrowing money and betting it on market price going down. 2x short means if price moves down 5%, you Can cash in 10%. 3xshort you get 15% fór 5% price decrease.
Short squeeze = bunch of people BET against a market and open short positions, but then players come and keep pushing the price Up, which means the traders with short positions are forced to close them at a loss And again if your open a 5x short f.e. but the price goes Up 10% leta say, now you loosing 50% of your position.
The short would have been already automatically closed long tíme ago by the exchange. For 2x short, it is liquidated if price goes Up 50%. 5x shorts are liquidated if price moves Up 20%
Can you help me understand why this important. Seems like it means that there are people who have "sold" a bunch of stock to clients, but are actually in possession of those stocks and are now holding the short stick?
Shorting = borrowing money and betting it on market price going down. 2x short means if price moves down 5%, you Can cash in 10%. 3xshort you get 15% fór 5% price decrease. Short squeeze = bunch of people BET against a market and open short positions, but then players come and keep pushing the price Up, which means the traders with short positions are forced to close them at a loss And again if your open a 5x short f.e. but the price goes Up 10% leta say, now you loosing 50% of your position.
The short would have been already automatically closed long tíme ago by the exchange. For 2x short, it is liquidated if price goes Up 50%. 5x shorts are liquidated if price moves Up 20%