Short Interest Ratio
Definition
The number of days it would take to cover all outstanding short positions based on average daily trading volume. Also known as days-to-cover, it measures short-selling pressure.
Formula / Rules
Short Interest Ratio = Total Shares Short / Average Daily Volume
Example
A short interest ratio of 5 means it would take 5 days to cover all shorts at current volume — signaling high short pressure.
Related Terms
Frequently Asked Question
What is Short Interest Ratio?
The short interest ratio measures how many days it would take to cover all short positions based on average daily volume. Higher ratios indicate greater short-selling pressure and potential for a short squeeze.
APA Citation
Last updated:
· Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.