Member Short-Sales Ratio

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.

BREAKING DOWN '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.