Section 2 · Market Mechanics
Float & Short Interest
The two numbers that determine squeeze potential.
A small float plus high short interest equals a powder keg.
Float = publicly available shares. Short interest = % sold short. Small float + high SI + positive catalyst = squeeze potential. Learn to spot these setups before the fuse is lit.
3 things to know
Float is the number of shares available to the public to trade.
Short interest above 20% of float is considered high — squeeze risk elevated.
Days-to-cover measures how long it would take all shorts to buy back their positions.
Dive Deeper
Key vocabulary — tap each card
Practice
Squeeze risk estimator
Days to cover (approx)
10
Higher = more explosive squeeze potential if a catalyst hits
Did you know?
GameStop in January 2021 had short interest exceeding 140% of its float — more shares shorted than existed publicly. That was the fuel for one of history's most famous squeezes.