What is A Short Squeeze? | How Short Selling Works
You have probably heard of the term "short squeeze”. In this video tell you what it is and how you can profit from a short squeeze
What is a short squeeze?
There are two types of people in the market. There are the "longs" and the "shorts" which are essentially buyers and sellers.
Buyers are hoping for the stock to go higher while Sellers are hoping for the stock to go lower.
Sellers are usually borrowing shares from brokers immediately selling it to the market, then they will look for the stock to move lower - they'll then buy it back at a lower price and profit from the difference. These people are called "short sellers."
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