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Trading Mechanics
Margin Call
Definition
A demand from a broker for additional funds when a short position moves against the trader. If the stock price rises significantly, the short seller must deposit more collateral.
Related Terms
Short Selling
A trading strategy where an investor borrows shares and sells them, hoping to buy them back at a lower price. The investor profits if the stock price falls and loses money if it rises.
Short Squeeze
A rapid increase in a stock's price caused by short sellers rushing to cover their positions. When many shorts try to buy shares simultaneously, it can drive the price up dramatically, forcing more shorts to cover.
See short selling in action
Explore real-time ASIC short position data for ASX stocks.