Bear Squeeze

AAA

DEFINITION of 'Bear Squeeze'

A change in market conditions that forces pessimistic investors attempting to profit from price declines to buy back an investment at a higher price than they sold it for. A bear squeeze can be an intentional event created by certain players in the investment markets, usually central banks or market makers.

INVESTOPEDIA EXPLAINS 'Bear Squeeze'

A central bank can create a bear squeeze by increasing exchange rates, while market makers can create a bear squeeze by pushing a stock's price up. A bear squeeze forces bearish investors, who have shorted a stock, to incur a loss. In order to exit their short positions, they must buy the stock back at a rising price. Also called a "short squeeze."

VIDEO

RELATED TERMS
  1. Short Squeeze

    A situation in which a heavily shorted stock or commodity moves ...
  2. Whipsaw

    A condition where a security's price heads in one direction, ...
  3. Bear Trap

    A false signal that the rising trend of a stock or index has ...
  4. Momentum

    The rate of acceleration of a security's price or volume. The ...
  5. Bull Trap

    A false signal indicating that a declining trend in a stock or ...
  6. Momentum Investing

    An investment strategy that aims to capitalize on the continuance ...
Related Articles
  1. Arbitrage Squeezes Profit From Market ...
    Options & Futures

    Arbitrage Squeezes Profit From Market ...

  2. Use The Momentum Strategy To Your Advantage
    Trading Strategies

    Use The Momentum Strategy To Your Advantage

  3. Momentum Indicates Stock Price Strength
    Trading Strategies

    Momentum Indicates Stock Price Strength

  4. The Uptick Rule: Does It Keep Bear Markets ...
    Active Trading Fundamentals

    The Uptick Rule: Does It Keep Bear Markets ...

comments powered by Disqus
Hot Definitions
  1. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  2. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  3. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  4. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  5. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  6. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
Trading Center