Short Interest Ratio
Definition of 'Short Interest Ratio'A sentiment indicator that is derived by dividing the short interest by the average daily volume for a stock. This indicator is used by both fundamental and technical traders to identify the prevailing sentiment the market has for a specific stock.Also known as the "short ratio". |
|
Investopedia explains 'Short Interest Ratio'This ratio provides a number that is used by investors to determine how long it will take short sellers, in days, to cover their entire positions if the price of a stock begins to rise. The short interest ratio can also be applied to entire exchanges to determine the sentiment of the market as a whole. If an exchange has a high short interest ratio of around five or greater, this can be taken as a bearish signal, and vice versa. |
Related Definitions
Articles Of Interest
-
Short Interest: What It Tells Us
This figure can be a real eye-opener about the market sentiment surrounding a given stock. -
Trader's Corner: Finding The Magic Mix Of Fundamentals And Technicals
For a record-holding stock trader, CANSLIM is the formula that identifies this magic mix. -
Short Squeeze The Last Drop Of Profit From Market Moves
This advanced strategy can be risky - but also very rewarding - for those who master it. -
Where can I find the number of shares shorted on a specific stock?
For general shorting information such as the short interest ratio, you can usually go to any website that features a stock quotes service. For example, you can find this information on the Yahoo ... -
Short Selling Tutorial
Want to profit on declining stocks? This trading strategy does just that. -
Low Expense Top Performing ETFs
A technical look at the four ETFs that rank highest for five-year performance, lowest expense ratio and total net assets. -
Break Into Forex In 12 Steps
Learn how to get started in forex trading. -
Market Summary For June 7, 2013
The major U.S. indices were mixed this week as modest improvements in employment numbers struggled to offset stagnant wages and a slightly higher unemployment rate. -
Stocks With Bullish MACD Crossovers
One of the most popular trading indicators is the MACD, and right now it's flashing a bullish signal in these four stocks. -
The Top Trade Setups In Tech
Check out these trade setups in four technology stocks to take advantage of strong market conditions, while still controlling risk.
Free Annual Reports