Volume and Shorts
Hi team,
Just a quick (and probably simple) question regarding volume and shorts.
Let's just say that there's a highly illiquid stock that trades one share per day on average. The volume shows, therefore, as one.
That share has been traded, and so now If a second person were to then short the stock, does the volume become a) zero b) remain at one, or c) two?
I feel like it should be an increase to two as two transactions have occurred, but just wanted to get clarification on the effects of shorts on volume.
Each short is someone's long on the other side (or someone closing his short an buying back from you, it doesn't really matter, still add's to the volume)
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