Bear Squeeze

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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.

BREAKING DOWN '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."

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RELATED FAQS
  1. What is the difference between a short squeeze and a long squeeze?

    Learn about short long squeezes, the difference between short and long squeezes, and how investors and traders can be squeezed ... Read Answer >>
  2. How is the short interest of a company related to a short squeeze of a company?

    Learn about the short interest and short squeeze, how to determine if a stock is a short squeeze candidate and how short ... Read Answer >>
  3. How can I evaluate if a stock is a short squeeze?

    Determine whether a stock is a short squeeze by studying the catalyst that caused the rally. Traders need to determine whether ... Read Answer >>
  4. How does days to cover a short position relate to a short squeeze?

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  5. What is the difference between a short squeeze and short covering?

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  6. What does "squeezing the shorts" mean?

    "Squeezing the shorts" refers to a questionable practice in which a trader takes advantage of a stock that has been short ... Read Answer >>
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