SHORT Squeeze and its formulation

• Hello gorgeous ladies and gentleman

• This is my first post in this community and I make sure I will keep on posting the more informative and quality content and I will show a series of the information here for today my topic is short squeeze.

• Short squeeze

• So let's start with its definition firstly I will elaborate on what it means This is actually a very good term which is used to see a quick increase in the price of any assest that is actually for the short sellor to do trading in the market.

• I will give an example of this platform if the steem price is rise so what will do and the short seller means the people who are daily basis earning little they will also sale their steem so they will do the trading and earn something in the same way when there is quick increase of price of any asset the short seller will come into the market for trading.

• Short queeze also happened if there is in the Crypto market there is quick increase of the cryptocurrency so what will do it will start that pressure is called buy pressure which is overdue on the selling pressure due to which short seller will have to obey that.

• For example I am showing here one example of the Bitcoin USD chart and from here you can see the price is consistently decreasing which is actually causing the short seller to do a sharp upward step.

Screenshot from

• We can see the market values this is very clear from this chart that and the short seller are actually hope to see the price of Bitcoin will decrease this is not happening but this will form a very short award direction move.

• Formation of short squeeze

• Another question is that how does the shorts queeze is formed so whenever we see there is a quick increase in the prices so it will ultimately date to the by pressure and as we all know when ever there is police friend in the crypto that will let you increase the price so in the same way the shorts quiz is also in the same direction that we are actually don't know what will happen because the prices are very tired and no one nose when the quick Run or sharp move will occur.

• Short queeze is formed when there is imbalance between the demand and supply which is important for the short sellers quickly buy and to make their position solid as we know when there is quick increase in the price so a very short queeze is formed.

• Advantage and disadvantages

• So now I will discuss a sum of its advantages and disadvantages of shorts queeze.

• Disadvantages

• The most important disadvantage is that when there is decreasing the price of any asset that is favourable for the short seller or if it decrease so what would happen if the price of any asset is going to up the short sellers are responsible for the consequences.

• And there is no empowerment of any asset to anybody if the seller will lose so and there will lose their assets nobody is going to return that.

• And for example if any person who borrowed the money like me and then he loses so what will happen all the loss will be to the person and he will have to pay what he borrowed so there is high leverage.

• Advantages

• So there are some of advantages is that leverage is one word which is important for the sellers means you can put a little one of what you trade and one portion you can left and still you can trade and this is the importance.

• Second a thing is no matter as the prices are going upper down still the shortcuts can get profit if they have better experience and knowledge.

• And the most importantly is that making positions so sellers should make position solid.

Picture I took screenshot from tradingview