Weak Shorts

Refers to the group of investors who hold a short position and are quick to exit their positions at the first sign of strength in the underlying asset. This group of investors look to capture the gain on a move lower, but they are usually unwilling to take on as much as rick as other investors.

Related Terms

Delta Hedging

Delta hedging is a risk management strategy used in options trading to reduce or eliminate the directional risk associated with price movements in the underlying asset

Gamma Squeeze

A gamma squeeze occurs when the gamma exposure of options dealers becomes very positive due to a large move in the underlying asset.

Perpetual Futures

Perpetual futures are a type of derivative contract that allows traders to speculate on the future price of an underlying asset without an expiration date.

Options

An option is a financial contract that grants the buyer the right, but not the obligation, to buy or sell an underlying asset at a specified price.

Relative Strength Index (RSI)

The RSI or Relative Strength Index is a technical indicator that measures the strength or weakness of a currency pair by comparing its up movements versus its down movements over a given time period. It does this by keeping track of recent price gains and losses and comparing them to the current price. The RSI indicator […]