The Need for Real-Time Data
Official exchange-reported short interest, such as the data published by FINRA in the US, is accurate but inherently delayed, often by up to eight business days. This lag creates a significant information gap for active traders. Ortex addresses this by providing daily and intraday estimates of short interest, cost to borrow, and utilization rates.
Key Metrics for Short Sellers
Ortex models short interest using securities-lending data, offering a more dynamic view of market sentiment. Key metrics include:
- Utilization %: Indicates how much of the available lendable supply is currently being borrowed. A rate near 100% suggests that shares are becoming scarce.
- Days to Cover: Calculated by dividing short interest by average daily trading volume, providing an estimate of how long it would take for short sellers to exit their positions.
- Cost to Borrow: The fee paid to borrow shares, which often spikes when supply is constrained.
By combining these real-time estimates with official exchange data, analysts can better identify potential squeeze setups and shifts in institutional sentiment.
Signal data sourced from Ortex. 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.