No, you don't know how long they need to be covered in, the days...

No, you don't know how long they need to be covered in, the days to cover just tells you how many days it would take to close off all the current shorts BASED ON THE PREVIOUS DAYS OF TRADING VOLUME. I guess you can keep your shorts open as long as you want, but you're paying interest on the norrowed stock, so there has to be a point where the interest will be more than any profit you make, but there is no fixed "you must close in 4 days" unless the broker calls up the stocks. Pretty sure this is how it works.

If 1million shares are shorted, and average volume traded was 100K per day for the previous 10 days then the days to cover would be 10. If the volume doesn't change at all, then short sellers will need 10 days to buy back all of the shares based on previous 10 days volume.

If the trading volume goes up over the future days, then that makes it easier for shorts to cover as there's more shares to buy, this will not initiate any real kind of squeeze on shorts, they may lose money, but they will have no trouble closing out positions = no squeeze.

If the trading volume was to go down over the future days (compared to the previous 10 days), then it would be more difficult for the shorted stocks to cover as there would be less available to buy and this is where squeezing happens.

Short squeezes will only really happen when there are a lot of stock that's shorted, and there are very little stocks to buy. The problem with z1p is, so many people trade it, and so many people sell when the price goes down so there's a lot of shares for short sellers to buy below the point where they shorted. If no one sells when the price drops and the shorting is high, this is where short sellers get screwed, because they have borrowed stocks they're paying interest on, and they need to buy them back eventually at a lower price than they sold at.

Lets look at the z1p pay actual numbers here.

As of close of business last friday, heres where the short numbers sit.

63,936,947 shares = 11.37% of the company shorted



If anything above is incorrect, feel free to correct me, i'm no expert and always willing to learn, this is just my understanding of how it works.

I don't short stocks so i'm not sure what the interest amounts are to borrow stocks to short, someone post it up and we'll do some simple maffs on how long you can hold for and how much movement is required to make it proftiable? How much does it cost me to borrow z1p share to short them.