Glossary

Days to cover (short interest)

Days to cover estimates how many trading days it would take short sellers to buy back their borrowed shares, based on recent volume.

Days to cover (the short-interest ratio) divides the number of shares sold short by the average daily trading volume. A reading of 5 means it would take roughly five normal days of buying for shorts to close their positions.

A higher ratio means a more crowded short and, in theory, more fuel for a sharp rally if the position unwinds. FINRA publishes short interest twice a month, so the data is a snapshot, not a live feed.

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