Short squeezes and settlement

A squeeze is a funding problem before it is a price problem, and the collateral call lands before the trade settles.

• Markets

2 ideas that carry it

• TechniqueMarketsFilm

  A corner works because someone must deliver what they have sold

  A short position is a promise to deliver; whoever controls what must be delivered controls the price.

  Questions on futures, short squeezes, margin or physical delivery in a markets interview.

  From Trading Places · 1983

• Case studyMarketsSeries

  A short squeeze is a funding problem before it is a price problem

  Settlement takes days, and the collateral call arrives before the trade clears. That gap is where a squeeze does its damage.

  Any long/short, prime brokerage or market structure conversation that touches GameStop.

  From Eat the Rich: The GameStop Saga · 2022