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12/11/2024 4:04:56 PM (GMT+1)

What does "Short squeeze" mean and how to recognize it?

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"Short squeeze" is a situation in the financial market where the price of an asset rises sharply, forcing traders who have opened short positions to buy shares to close their positions, which in turn drives the price even higher. This occurs when stocks that were expected to fall begin to rise, and traders start to panic.

How to recognize it? It’s important to monitor assets with a large number of short sellers. If trading volumes suddenly increase, and the price begins to rise, this may signal a short squeeze. At this moment, it's important to act quickly to profit before the trend reverses.


This material was prepared by Khachatur Davtyan, developed and translated by artificial intelligence.



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