Glossary
What is Squeeze
A sharp move where other traders' exits push price further: stops and liquidations of shorts turn into buying, and those of longs turn into selling.
How it works
Example
A coin runs from 100 to 106. A 15× short with no stop gets liquidated near +6%: 1/15 = 6.7% minus a 0.5% maintenance rate. The exchange closes it with a market buy, and that buy pushes price higher, toward the next shorts.
Common mistake
Shorting an "overheated" rally with no stop: a squeeze does not end where fair value looks like it should.
Read next
Related terms
Frequently asked questions
- Where can I learn Squeeze step by step?
- In the Trading OS Academy: “Leverage is sizing, not greed”.
- What is Squeeze related to?
- Liquidation; Leverage; FOMO — fear of missing out; Sweep — liquidity grab.
Plan versus outcome — for every trade
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