What is a short grip?
A short press is a situation that arises when the value of the shares begins to rise radically, puts pressure on short sellers and leads to a situation where there are not enough shares available to satisfy demand. Short compression may appear on a wide range of markets and usually happen because of newspapers or political events that make stock traders nervous or restless. For short retailers, short compression may be a catastrophic turn of the events, resulting in great losses. Some short sellers may move because they are afraid that they have a great loss to the stock, while others may be forced to move because they have crossed their business margins and want to avoid calling margins from their brokers. As more and more short retailers long for the purchase of shares, the price is rising and constantly rising.
Some people can benefit from a short press if they know how to play their cards correctly and can recognize the first signs of a short press. These jEdnotes get inside, while the stock price is relatively cheap, and then sells when they reach an unusually high price. Short compression may take several hours or several days, depending on the stocks and the situation, and at the appropriate time it is very Canny the investor to move to the right action.
Inform shares are particularly vulnerable to short cats, but any supply can potentially participate in this classic situation in the stock market. As soon as the short compression begins, it is usually kept by a cascade series of events, ensuring that the inventory value increases radically and very quickly. Usually, the increase in value has no direct correlation with what is happening in society, and in fact, companies may be involved in a short presses in a very poor financial situation.
On the other hand, a short grip is a long grip in which investors are starting to compose shares of shares because they are afraid it will not work, thus reducing the price, as the market becomes sticky shares. WhenTheir value will begin to decline, it may be tempting to sell stocks, but investors should think about the fact that they can contribute to a long press and may be more advantageous to keep shares of shares to understand that they will eventually increase the value.