Short squeeze
A short squeeze is a sharp price rise that forces short sellers to buy shares back to limit their losses, which pushes the price even higher.
GameStop in January 2021 is the best-known example, when heavy buying drove the price up over 1,000% in weeks.
Related terms
- Short selling: Short selling is borrowing shares, selling them, and buying them back later, to profit if the price falls.
- Margin call: A margin call is a demand from your broker to add cash or sell investments because your own stake in a margin account has fallen below the required minimum.
Practise with $10,000 in play money
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For learning only. This isn't financial advice.