What is a Short Squeeze and How Can You Profit From It?
You may have heard of the term "short squeeze" in the past - but didn't know what it meant. I'm here to tell you what it is and how you can capitalize and profit from a short squeeze.
What is a short squeeze?
There are two players in the market. There are the "longs" and the "shorts" which are equivalent to buyers and sellers.
Buyers are looking for the stock to head higher while Sellers are looking for the stock to head lower.
Sellers typical are borrowing shares from their brokers - then will look for the stock to head lower - they'll purchase it back at a lower price and pocket the difference. These are called "short-sellers."