4 ms·
But what happens when they all need to cover? regardless of who lent to who, all the parties who borrowed are looking to now buy the same 90 shares? I don't kno
by mangoman 6y ago
But what happens when they all need to cover? regardless of who lent to who, all the parties who borrowed are looking to now buy the same 90 shares? I don't know the answer and am asking.
I also wonder what happens when a cycle happens?
- cambalache 6y agoThe 90 shares presumably have to be bought and sold twice or more, heavily incrementing the price for the last buyer.
- bewaretheirs 6y agoThey have to buy the shares on the open market, and have to raise their bids until sellers appear. The ramp up in price -- and the consequences for the shorts -- is known as a "short squeeze".
- deleted 6y ago[deleted]