Short Interest

The quantity of shares that have been sold short and are still on the market is known as the short interest. If they believe the price will fall, traders would often borrow shares of stock and short sell an asset. Afterward, the investor sells these borrowed shares to buyers who are prepared to pay the going rate. Short interest frequently serves as a gauge of market sentiment. When short interest rises, it frequently indicates that investors have become more negative, while a decline in short interest indicates the opposite.