Member Short-Sales Ratio

AAA

DEFINITION of 'Member Short-Sales Ratio'

A ratio comparing the number of short sales transacted on behalf of NYSE members to the entire number of short sells transacted on the exchange.

INVESTOPEDIA EXPLAINS 'Member Short-Sales Ratio'

This ratio is used to gauge and analyze the sentiment of market professionals. By isolating the number of shorts transacted by "pros," investors can remove the unwanted noise of public traders, who may be less informed.

RELATED TERMS
  1. Short Selling

    The sale of a security that is not owned by the seller, or that ...
  2. Short Interest Ratio

    A sentiment indicator that is derived by dividing the short interest ...
  3. Noise

    Price and volume fluctuations in the market that can confuse ...
  4. Market Sentiment

    The overall attitude of investors toward a particular security ...
  5. Mutual Fund Liquidity Ratio

    A ratio published monthly by the Investment Company Institute ...
  6. Sentiment Indicator

    A graphical or numerical indicator designed to show how a group ...
RELATED FAQS
  1. How can an investor profit from a decline in the real estate sector?

    Speculation enables investors to profit from a decline in the real estate sector. The most popular forms of speculation for ... Read Full Answer >>
  2. How can I evaluate if a stock is a short squeeze?

    To evaluate whether a stock is a short squeeze, traders should examine its fundamentals, short interest and price history. ... Read Full Answer >>
  3. What is the difference between a short squeeze and short covering?

    "Short covering" and "short squeeze" are different terms to describe a situation involving short positions. A short squeeze ... Read Full Answer >>
  4. How does days to cover a short position relate to a short squeeze?

    Days to cover a short position reveals the intensity and duration of a potential short squeeze. A short squeeze occurs when ... Read Full Answer >>
  5. What is the difference between speculation and hedging?

    Speculators and hedgers are different terms that describe traders and investors. Speculation involves trying to make a profit ... Read Full Answer >>
  6. How can I profit from a decline of stock prices in the insurance sector?

    Some of the methods of profiting from a decline in the insurance sector are shorting insurance stocks, shorting insurance ... Read Full Answer >>
Related Articles
  1. Active Trading Fundamentals

    Short Interest: What It Tells Us

    This figure can be a real eye-opener about the market sentiment surrounding a given stock.
  2. Active Trading Fundamentals

    Forces That Move Stock Prices

    You can't predict exactly how stocks will behave, but knowing what affects prices will put you ahead of the pack.
  3. Active Trading Fundamentals

    Short Selling Tutorial

    Want to profit on declining stocks? This trading strategy does just that.
  4. Stock Analysis

    Should You Short These Debt-Laden Stocks?

    These stocks have high debt-to-equity ratios making them prime candidates to short.
  5. Professionals

    The Coming Stock Market Decline: What to Expect

    Many big investors are fearful of a market decline. Even if they're correct there is always a way to profit.
  6. Active Trading Fundamentals

    How To Short Amazon Stock

    With the stock reaching all-time highs and the company gambling on several new business lines, many investors may feel it's a good time to short sell Amazon.
  7. Trading Strategies

    Profitable Long-Term Consolidation Patterns

    Long-term consolidation patterns set up high reward opportunities for patient market players.
  8. Stock Analysis

    Kohl's: Does a Broken Stock Mean a Broken Company?

    Kohl's stock is broken, but the company is strong.
  9. Retirement

    Risky Business:Trading Inverse ETFs in an IRA

    Since you can't short stocks in an IRA, consider these liquid inverse ETFs instead.
  10. Trading Strategies

    One Thing To Consider After An Uptrend

    A breakdown at support could eventually yield a profitable trading opportunity in the opposite direction.

You May Also Like

Hot Definitions
  1. Radner Equilibrium

    A theory suggesting that if economic decision makers have unlimited computational capacity for choice among strategies, then ...
  2. Inbound Cash Flow

    Any currency that a company or individual receives through conducting a transaction with another party. Inbound cash flow ...
  3. Social Security

    A United States federal program of social insurance and benefits developed in 1935. The Social Security program's benefits ...
  4. American Dream

    The belief that anyone, regardless of where they were born or what class they were born into, can attain their own version ...
  5. Multicurrency Note Facility

    A credit facility that finances short- to medium-term Euro notes. Multicurrency note facilities are denominated in many currencies. ...
  6. National Currency

    The currency or legal tender issued by a nation's central bank or monetary authority. The national currency of a nation is ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!