Nearby Terms

short interest ratio
Short leg

short interest ratio


A measure of how many days it would take for shares held in short positions for a given security to be liquidated. The short interest ratio is calculated by dividing the short interest by the security's average trading volume. A high short interest ratio can insert downward pressure on the price of the security because it indicates a negative bias in the market. When the ratio rises to an extreme level, however, it can indicate that the security is reaching an oversold condition.

Related Terms

 • short interest