short interest
The share of a stock sold short — fuel for a potential squeeze.
Definitions
The percentage of a company's shares that have been sold short. High short interest is the kindling retail traders look for to ignite a short squeeze.
short interest In A Sentence
Origin & Usage
Standard market metric; became a rallying data point on r/WallStreetBets during the 2021 squeezes.
People Also Ask
What is short interest?
It's the percentage of a company's shares that have been sold short — a measure of how many traders are betting the stock will fall.
Why do WSB traders watch short interest?
High short interest is the fuel for a short squeeze: if the price rises, short sellers must buy back shares to cover, pushing the price even higher.
Can short interest be over 100%?
Yes. Because borrowed shares can be re-lent, short interest can exceed 100% of a company's shares, which traders see as primed for a squeeze.
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