Eli5 bitcoin reddit news

Moving average convergence divergence, or MACD, is one of the most popular tools or momentum indicators used in technical analysis. This was developed by Gerald Appel towards the end of s. This indicator is used to understand the momentum and its directional strength by calculating the difference between two time period intervals, which are a collection of historical time series. Management buyout MBO is a type of acquisition where a group led by people in the current management of a company buy out majority of the shares from existing shareholders and take control of the company.

We are searching data for your request:

Eli5 bitcoin reddit news

Databases of online projects:
Data from exhibitions and seminars:
Data from registers:
Wait the end of the search in all databases.
Upon completion, a link will appear to access the found materials.

WATCH RELATED VIDEO: Update: Battered Crypto Traders Hedge For Fed Meeting Jan 26


A short squeeze is an unusual condition that triggers rapidly rising prices in a stock or other tradable security. For a short squeeze to occur, the security must have an unusual degree of short sellers holding positions in it.

The short squeeze begins when the price jumps higher unexpectedly. The condition plays out as a significant measure of the short sellers coincidentally decide to cut losses and exit their positions. When a heavily shorted stock unexpectedly rises in price, the short sellers may have to act fast to limit their losses. Short sellers borrow shares of an asset they believe will drop in price in order to buy them after they fall.

If they're right, they return the shares and pocket the difference between the price when they initiated the short and the price when they buy the shares back to close out the short position.

If they're wrong, they're forced to buy at a higher price and pay the difference between the price they set and its sale price. Because short sellers exit their positions with buy orders, the coincidental exit of these short sellers pushes prices higher. The continued rapid rise in price also attracts buyers to the security. The combination of new buyers and panicked short sellers creates a rapid rise in price that can be stunning and unprecedented.

The flight of short sellers and their impact on a stock's price is known as a short squeeze. Short sellers are being squeezed out of their positions, usually at a loss. Short sellers zero in on a stock that they think is overvalued by the market.

For example, Tesla captured the enthusiasm of many investors with its innovative approach to producing and marketing electric vehicles.

Investors bet heavily on its potential. Short sellers bet heavily on its failure. In early , Tesla was the most-shorted stock on the U.

In early March , Tesla's stock finally fell, along with most others, during a market downturn. As noted, short sellers open positions on stocks that they believe will decline in price. However sound their reasoning, a positive news story, a product announcement, or an earnings beat that excites the interest of buyers can upend this.

But if it's not, the short seller can face runaway losses as the expiration date on their positions approaches. They generally opt to sell out immediately even if it means taking a substantial loss. The percentage of Tesla stock that represented short interest in late Its stock price quadrupled, and short sellers lost billions.

That's where the short squeeze comes in. Every buying transaction by a short seller sends the price higher, forcing another short seller to buy. When identifying stocks that are at risk of a short squeeze, two useful measures are short interest and the short interest ratio. Short interest is the total number of shares sold short as a percentage of total shares outstanding. Speculative stocks tend to have higher short interest than more stable companies.

Watching short interest can tell you whether investor sentiment about a company is changing. Fewer short shares could mean the price has risen too high too quickly, or that the short sellers are leaving the stock because it has become too stable.

A positive news story, a product announcement, or an earnings beat that excites the interest of buyers can defeat a short position.

A rise in short interest above the norm indicates investors have become more bearish. But an extremely high reading could be a sign of a coming short squeeze, which could force the price higher. Contrarian investors may buy stocks with heavy short interest in order to exploit the potential for a short squeeze.

A rapid rise in the stock price is attractive, but it is not without risks. The stock may be heavily shorted for good reason, such as a dismal future outlook. Active traders will monitor highly shorted stocks and watch for them to start rising. If the price begins to pick up momentum, the trader jumps in to buy, trying to catch what could be a short squeeze and a significant move higher.

There are many examples of stocks that moved higher after they had a heavy short interest. But there are also many heavily shorted stocks that then keep falling in price. A heavy short interest does not mean the price will rise.

It means that many people believe it will fall. Anyone who buys in hopes of a short squeeze should have other and better reasons to think that the price of the stock will go higher. Naked short selling is short selling a stock without first borrowing the asset from someone else.

The naked shorting tactic is high-risk but also poses a high reward. Naked shorting still happens thanks to discrepancies that exist between electronic and paper trading. Naked shorting can help exacerbate short squeezes by allowing for additional shorting that might otherwise not exist. Naked short selling, on one hand, is said to help balance the market.

That is, naked shorting can force a price drop, which leads to some share sales to cut losses, allowing the market to effectively find balance. Consider a hypothetical biotech company, Medicom, which has a drug candidate in advanced clinical trials. There is considerable skepticism among investors about whether this drug will actually work. As a result, there is heavy short interest. In fact, 5 million Medicom shares have been sold short of its 25 million shares outstanding.

The short interest ratio, also called days to cover, means that it will take five days for short sellers to buy back all Medicom shares that have been sold short. GameStop , due to a rise in competition and decline in foot traffic at malls, became a target of short sellers. Then a bull case for the company—that it could return to profit in a couple of years—started getting around in early The bull case was also touted on Reddit. From there, it was a snowball effect of retail investors buying stock and call options.

The price increase drove out some short sellers and attracted various big-name investors and public figures, such as Elon Musk and venture capitalist Chamath Palihapitiya. GameStop's stock price surged due to a short squeeze on major hedge funds that were short the stock and forced to sell to cut losses. Days to cover, also known as the short interest ratio, is calculated by taking a stock's total number of shares sold short and dividing that number by the stock's average daily trading volume.

For example, if a stock has 1 million shares sold short and its average daily trading volume is , shares, then the days to cover would be 10 days.

That is, it would take 10 days for short sellers to cover their entire short position based on the average daily volume of shares traded. In general, the higher a stock's days-to-cover figure, the more susceptible it may be to a short squeeze.

If days to cover for stock A and stock B are two days and 20 days respectively, then stock B may be more vulnerable as a short squeeze target. Speculators and traders who have short positions in a stock will face heavy losses if the stock undergoes a short squeeze. Contrarian investors who have built up long positions in the stock in anticipation of a short squeeze will benefit as the stock price climbs. Finance portals such as Yahoo Finance have free stock screeners that generate lists of heavily shorted stocks; drilling down into individual stocks displays relevant short-selling information such as the number of shares sold short and the short interest ratios for specific companies.

Online resources like MarketBeat. Exchanges such as the New York Stock Exchange and Nasdaq also publish short interest data for the exchanges as a whole. Trading Basic Education. Trading Strategies. Your Money. Personal Finance. Your Practice. Popular Courses. Table of Contents Expand. Table of Contents. What Is a Short Squeeze? Understanding a Short Squeeze. Why Short Squeezes Happen. Special Considerations.

Naked Short-Selling. Example of a Short Squeeze. GameStop Short Squeeze. Frequently Asked Questions. Key Takeaways A short squeeze accelerates a stock's price rise as short sellers bail out to cut their losses. Contrarian investors try to anticipate a short squeeze and buy stocks that demonstrate a strong short interest. Both short sellers and contrarians make risky moves. A wise investor has additional reasons for shorting or buying that stock.

Article Sources. Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.

Compare Accounts. The offers that appear in this table are from partnerships from which Investopedia receives compensation.

Reddit user claiming to be Tesla insider now says bitcoin posts were not true

Dogecoin, a digital coin originally founded as a joke, skyrocketed Thursday after a Reddit board talked about making it the cryptocurrency equivalent of GameStop. Dogecoin was created in based on the popular "doge" meme at the time which involved a Shiba Inu dog. The logo of dogecoin is a Shiba Inu. It was initially started as a joke but has since found a community. While it has taken a backseat to larger cryptocurrencies like bitcoin and ether in recent years, its resurgence in the last few days has been down to enthusiasm from a Reddit group called SatoshiStreetBets. At On Thursday, one poster claimed Doge is the "crypto gme".

Jul 26, #17 Can someone ELI5, if the Big 12 still has their media rights The top crypto news, reports, stats of the week and give our latest crypto.

Reddit litecoin worth it ico coin review

In the first weeks of , it discovered just how strong it's become. Growth accelerated further this month, and the forum's 2. Members have spent the past three weeks bidding up the video game retailer GameStop, and the results have been spectacular. Their overwhelming bullishness has fueled billions of dollars in losses for short-sellers. One bear has even stopped commenting on GameStop stock, citing harassment from some members. Wall Street Bets has done this before. They're particularly big fans of electric-vehicle stocks; Tesla enjoys unique enthusiasm on the forum. Yet previous Reddit-fueled rallies typically lasted a matter of days before profit-taking pulled prices back to earth. The subreddit's obsession with GameStop shows no signs of abating.

Ethereum: What is it and how is it different from bitcoin?

eli5 bitcoin reddit news

A message to TSLAinsider was not immediately returned. Tesla did not immediately respond to an email to its press office. US Treasury Secretary Janet Yellen last week vowed to protect investors but said financial market regulators needed to fully understand the recent trading frenzy involving GameStop Corp and other retail stocks before taking any action. As the post was focused on bitcoin, the tipper may benefit from a grey area in oversight and enforcement, as the US Securities and Exchange Commission SEC does not treat the cryptocurrency as a security, one expert said. Civil insider trading cases typically hold tippers to a standard of benefitting from the sharing of information.

A short squeeze is an unusual condition that triggers rapidly rising prices in a stock or other tradable security. For a short squeeze to occur, the security must have an unusual degree of short sellers holding positions in it.


CoinMarketCap News. Crypto Glossary. This is an invention of the API3 protocol. A shielded transaction is essentially a transaction that is between two shielded addresses. Abstract Abstract is something that exists in thought as an idea.

Amy ter Haar: Why everyone in crypto is talking about the London Hard Fork

Beauty that's forever. Do you see many fish? I would recommend finding someone near you who would let you use their tools. If you're in the PNW I have tools. Thanks for the support. I built my ar15 but that was simple compared to this. Honestly, I poured myself 2 glasses of wine and went on Reddit.

The London Hard Fork represents a big step toward an overarching upgrade of the network known as Ethereum

NFTs, explained

If you need somewhere to store your crypto, you may be looking for a crypto wallet. A wallet is a program to help you manage the keys you need to access your cryptocurrency. Most of the top crypto exchanges have built-in wallets, but you may want the extra security and flexibility of having your own.

Crypto Concepts And Jargons Demystified By A 'Curious Beginner'

But many crypto investors dismiss dogecoin as little more than a joke and have compared its rise to the Reddit-fueled trading frenzy that pumped up the prices of GameStop and other stocks. Ether is the native currency of Ethereum, an open-source blockchain platform. Ethereum was founded in by Russian-Canadian programmer Vitalik Buterin and several other crypto entrepreneurs. Many of the people who started Ethereum were previously involved in bitcoin. For Buterin, bitcoin was too limited in functionality. In an interview with Business Insider , he compared it to a pocket calculator that "does one thing well," whereas he said Ethereum is more like a smartphone with multiple applications you can use.

Naked shorting is the now-illegal practice of selling short shares that have not been affirmatively determined to exist.

Reddit frenzy pumps up Dogecoin, a cryptocurrency started as a joke

Discovered by Player FM and our community — copyright is owned by the publisher, not Player FM, and audio is streamed directly from their servers. People love us! User reviews "Love the offline function" "This is "the" way to handle your podcast subscriptions. It's also a great way to discover new podcasts. Put away your party hats, because it's time for another episode of The Verdict..

Reddit co-founder announces €86 million investment in social media on Solana blockchain

In the past few months, almost every newspaper, website, or magazine has published an article titled something like this: "WTF is an NFT? NFTs represent unique digital items whose metadata is stored on a blockchain. These NFTs are used to authenticate a range of digital files, including images, videos, songs, and even Tweets. Instead of physical art, more and more wealthy investors are transferring their funds into cryptocurrency and then putting down large sums of money on NFTs.

Comments: 3
Thanks! Your comment will appear after verification.
Add a comment

  1. Aleyn

    This amusing message

  2. Kijinn

    In my opinion you commit an error. I suggest it to discuss. Write to me in PM, we will communicate.

  3. Teyrnon

    the incomparable theme ...