what direction will a stock usually go if other traders are scambling to cover shorted positions

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what direction will a stock usually go if other traders are scambling to cover shorted positions

by C. morgan
(new jersey)

If I hear that other traders are scrambling to cover their short positions of a stock will this cause the stock price to increase or decrease and once the short covering is over how will the stock price usually react?

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what direction will a stock usually go if other traders are scambling to cover shorted positions

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Sep 20, 2010

Stocks Simplified Writes
by: Shaun

When traders buy back their short positions that will add bullish pressure to the stock because shares are being bought. Also when traders are scrambling to get out of their short positions it is usually because the stock is heading up and they want to get out of their positions now at the lower price before it does go up.

Keep in mind that it takes a lot of money to move stock in large companies, so a lot of traders would have to be short and would have to buy back their shares in order to affect the price of the

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what direction will a stock usually go if other traders are scambling to cover shorted positions

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what direction will a stock usually go if other traders are scambling to cover shorted positions