High short interest stocks: the most shorted stocks this week

The most shorted stocks give us vital insights into not only the sentiment toward individual companies but the broader market too. Track the top 10 most shorted stocks this week and find your opportunity.

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Shorted stocks list: this week’s most shorted stocks

Here are the most shorted stocks this week – ended September 24 2021 – by average sell volume according to client account data from City Index for UK. 

  1. Tesla
  2. Civitas Social Housing
  3. Ambu
  4. BHP Group
  5. Future
  6. Anglo American
  7. Bank of Ireland
  8. Antofagasta
  9. Door Dash
  10. Evraz

Tesla (-0.55%) and Civitas Social Housing (-8.11%) remain in the top two spots this week. While Tesla is known for being a highly shorted stock, shares of Civitas are sliding amid housing concerns and regulatory issues.

Ambu shares remain in the top most shorted stocks, despite having seen an increase of 2.62% this week. The short interest is likely still due to concerns over the 217% share price rise over the last 5-years spooked investors. Likewise, Door Dash is down 2.7% this week, likely following a few outlets voicing concerns that its overvalued.  

Antofagasta is new on the list, added amid uncertainty over mining companies’ abilities to withstand the shock to the global economy. FTSE 100 mining stocks in general had seen a decline throughout the month, as did the price of copper and other commodities.

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Most short-sold stocks explained

The most shorted stocks are those that have been sold the most over a period of time, in this case a week.

Traditionally, in order to short a stock, you’d have to borrow the asset from a third party before you could sell it on the market. You’d do so in the belief that the market price would fall, and you could buy it back at a lower price, pocketing the difference before you return the shares to your lender.

Now, thanks to electronic trading and derivatives, shorting a stock is just as straightforward as buying it. You just click ‘sell’ in your platform rather than ‘buy’. This is because you’ll never take ownership of the shares, you’re just speculating that it will fall in price.

Heavily shorted stocks create a bear market, where sellers enter and put downward pressure on the asset’s price. Buyers are forced to close their positions before they lose too much money, causing the market price to just fall lower and lower.

Still not sure what shorting a stock is? Learn more about how to short a stock.

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