Trading

What is Short squeeze?

A rapid rise forced by shorts buying back, which can feed on itself in thin markets.

When price rises against heavily shorted positions, buyers who must close become buyers. In a thin book that buying pushes price further, forcing more closures.

Squeezes are short-lived and hard to forecast, which is why the models here publish ranges rather than trying to catch them.

  • The total value of futures positions currently open, a measure of how much leverage is in play.

  • Forced closing of a leveraged position when its margin falls below the maintenance level.

  • LiquidityTrading

    How easily you can buy or sell without moving the price: depth, spread and turnover together.

See it on a coin page