Short Squeeze Calculator

Author: Neo Huang Review By: Nancy Deng
LAST UPDATED: 2024-09-19 06:22:14 TOTAL USAGE: 156 TAG: Finance Market Trading

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A short squeeze occurs when a heavily shorted stock rapidly increases in price, forcing short sellers to cover their positions, which drives the price up even further. The "days to cover" metric, calculated by dividing the number of shares shorted by the average daily trading volume, indicates how long it would take for all short sellers to cover their positions. High days to cover can signal a potential squeeze, making this calculator useful for investors and traders looking to identify such opportunities.

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