You short-sell 10 shares of NVIDIA at $500 per share.
Drag the slider to simulate future prices and see your gain/loss.
Future Price: $500
A short squeeze happens when the price of a heavily shorted stock rises sharply, forcing short sellers to buy back shares to limit their losses. This buying pressure pushes the stock price even higher, leading to even bigger losses for short sellers. Short squeezes are particularly dangerous because the potential losses for short sellers are unlimited as the stock price continues to rise.
In this simulation, if the price of NVIDIA rises far above $500, it represents a potential short squeeze.