Period when stocks or commodities futures increase in price and investors who have sold short must cover their short positions to prevent loss of large amounts of money.

A characteristic of a market where traders are forced to liquidate at unfavorable prices. An example would be a market where there are more long positions willing to take delivery than commodity available for delivery. Holders of short positions wanting to get out of the market are forced to offset at higher prices.

Situation in which those who are short cannot repurchase their contracts, except at a price substantially higher than the value of these contracts in relation to the rest of the market.

a state in which there is a short supply of cash to lend to businesses and consumers and interest rates are high

Situation in which those who are short cannot repurchase their contracts, except at an artificially inflated price, normally resulting from a temporary shortage of the item underlying the futures contract.

Artificial commodity shortage

A term used in the Futures market when those in a short position (in a particular commodity) have to pay a substantial y higher price to repurchase their contracts. Normally caused by a scarce supply of the underlying commodity (i.e. Oil).

A situation in futures markets brought on by scarce supply of the underlying physical commodity, in which those who are in a short position cannot repurchase their contracts, except at a much higher price than their value in terms of the whole market.

See Short Squeeze