Short-Ratio

Shorting a market is when you borrow shares from a broker; sell them on the market, and then buying them back at hopefully a lower price, returning the shares to the lender. The short ratio is essentially letting the market know the number of share being shorted of that equity. Also, it can tell you how long it will take the borrower to buy those shares back.

Updated over a year ago
View currently updated edicational stories
Filter Short Ratio
Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.

Reviewed by Rifka Kats

When you see the percentage of the market being shorted getting higher, you can gather there is a bearish mentality in the current market settings. This type of statistic can be used in both fundamental research as well as technical. If you’ve been around the market long enough, you will have heard the term a short squeeze. When this occurs, it is when the market is going up and short sellers begin buying shares to cover their positions, contributing to the upward trend.

Shorting the market takes some skill as most people are passive investors and look to buy on dips and hold for the long term. With that in mind, be sure to complete research before shorting the market because it may not be for everyone. You have to keep in mind there may be a cost to short the shares that can eat into your profits. Short selling is a great way to take advantage of a short term market down swing, but as we all know, the market typically rounds and continues pushing to the upside.

Building efficient market-beating portfolios requires time, education, and a lot of computing power!

The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.

Try AI Portfolio Architect

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com

Did you try this?

Run AI Investment Finder Now

   

AI Investment Finder

Use AI to screen and filter profitable investment opportunities
All  Next Launch Module
Check out Investing Opportunities to better understand how to build diversified portfolios. Also, note that the market value of any private could be tightly coupled with the direction of predictive economic indicators such as signals in estimate.
You can also try the Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.

Other Consideration for investing

Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Economic Indicators
Top statistical indicators that provide insights into how an economy is performing
Price Transformation
Use Price Transformation models to analyze the depth of different equity instruments across global markets
Money Managers
Screen money managers from public funds and ETFs managed around the world
Equity Valuation
Check real value of public entities based on technical and fundamental data