Short squeeze

Short selling is when an investor bets that a stock will go down in price. The investor borrows the stock from a large holder, sells it, and plans to buy it back cheaper and return it when the stock has dropped in price, pocketing the difference as profit.

When a large number of short sellers target the same stock and there is a price rise or a multiple lender calls in all its shares in the stock at once, the short sellers have to buy the shares back to cover their positions and avoid greater losses.

Their sudden high level of demand forces the share price to rise suddenly and dramatically. This self-perpetuating circle is known as a ‘short squeeze’.

66% off newsstand price

12 issues (and much more) for just £12

That’s right. We’ll give you 12 issues of MoneyWeek magazine, complete access to our exclusive web articles, our latest wealth building reports and videos as well as our subscriber-only email… for just £12.

That’s just £1 per week for Britain’s best-selling financial magazine.

Click here to take advantage of our offer

Britain is leaving the European Union. Donald Trump is reducing America’s role in global markets. Both will have profound consequences for you as an investor.

MoneyWeek analyses the critical issues facing British investors on a weekly basis. And, unlike other publications, we provide you with the solutions to help you turn a situation to your financial advantage.

Take up our offer today, and we’ll send you three of our most important investment reports:

All three of these reports are yours when you take up our 12 issues for £12 offer today.

MoneyWeek has been advising private British investors on what to do with their money since 2000. Our calls over that period have enabled our readers to both make and save a great deal of money – hence our position as the UK’s most-trusted investment publication.

Click here to subscribe for just £12