🚀 What is a Short Squeeze? And why can prices suddenly explode?
Have you ever wondered why the price of a stock or commodity (like silver) rises crazily and quickly without warning? The secret often lies in what is known as the "Era of Short Sellers" or the Short Squeeze.
📉 The tale begins with "short selling":
Investors bet on a price drop. They borrow the stock and sell it immediately (for example, at $10), hoping to buy it back later at a lower price (for example, $5) to profit from the difference.
⚠️ The surprise (the opposite scenario):
Instead of dropping, something unexpected happens (a positive news or a buying attack), and the price starts to rise instead of fall!
⛓️ The Trap (The Squeeze):
Here, the "short sellers" find themselves in a predicament! To minimize their losses, they are forced to buy the stock quickly to return it to the lender.
💥 The price explosion:
When these sellers rush to buy "at any cost" to cover their positions, their massive demand adds to the normal demand in the market.. and the result? A sharp and explosive price jump!
In short: The Short Squeeze is when those betting against the market are forced to buy to survive, pushing the price to the top against their will! 📈
Do you think what is happening in the silver market right now is a real "Short Squeeze"? Share your opinion with us! 👇