The short position is the percentage share for a particular security, the number of shares sold short on the number of shares issued. For example, if 10 million shares of XYZ were sold short, while 100 million shares were issued, the short interest is 10%. This rate is an average of 4.5% in U.S. Equities and Trade Alert Scanner.
For example, if a total of 10 million shares of XYZ were sold short, while the average daily trading volume of 1 million, then it takes about 10 days to settle the aggregate short position.
Short selling allows to extend the trading of a security from sellers who are not holders, short selling promotes liquidity, which in turn facilitates hedging. It is one of the instruments of the market maker. Short selling inhibit the formation of rising bubbles. It helps to inform the market of any fraud or accounting manipulation, when this information.
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