Understanding Daily Short Volume (Flow)
FINRA publishes daily short sale volume per ticker, which represents the number of shares marked short on each trade during the day. It is critical to distinguish this 'flow' data from 'open interest' (the total number of shares held short). A spike in daily short volume percentage indicates heavy short-selling pressure for that specific trading session, but it does not necessarily mean that open short positions have increased.
Data Utility for Traders
Traders use the Reg SHO daily files to gauge intraday sentiment and identify when market participants are aggressively selling short. Because this data is published after market close and is not consolidated with exchange data, it should be used as a directional indicator of daily pressure rather than a precise measure of total market positioning. Accessing this data via the FINRA Data Catalog allows for a granular look at off-exchange and TRF-reported short activity.
Signal data sourced from FINRA. This post is an original analysis prepared by The Forensic Ledger from publicly available data. Not investment advice.
Not investment advice. This is original reporting and analysis prepared by The Forensic Ledger from publicly available data. Nothing here is a recommendation to buy, sell, or hold any security. Always consult the original source and a licensed professional. See our full disclaimer and source-citation policy.