Stocks With Short Interest - Which Stocks Should You Invest In?

Read our guide to stocks with short interest to see why this is an essential piece of information for all traders. Hugely important if you want to trade at an online broker like us at

Sign Up Now

Useful indicators and tools

At CAPEX, you have many indicators and tools at your disposal to make an investment decision. This is because we will let you see the current list of stocks with short interest so that you can see whether you should purchase CFDs in that stock or invest elsewhere. NASDAQ produces a list like this every month and it should be factored into your trading strategies.

Take advantage of stocks with low short interest

When the short interest of a stock decreases, it means that there is growing optimism in the market about a stock. The bullish attitude indicates that the stock price will probably rise. Spotting a stock with low short interest will give you an early indication that it could be wise to invest in this company.

We, at CAPEX, give you a fast and simple way to trade in stocks with low short interest. Online trading of CFDs means that you can trade in these stocks without having to actually own the underlying asset. It’s never been easier to take advantage of stock with low short interest.

Sign Up Now

What does stock with short interest mean?

Stocks with short interest refers to how a company’s stock is viewed on the market. This can be either a positive or negative thing. It refers to how many shares have been sold but have yet to be bought by someone else. As such, stocks with short interest can be thought of as an indicator as to what the market thinks about a stock.

The basics of stocks with short interest

Stocks with short interest refer to those stocks that have been shorted but haven’t yet been closed out. The figure is usually represented as a percentage or a number that shows how many outstanding shares there are. All of which tells investors whether they should invest in that stock or stay away.

At CAPEX, we’ll give you the tools you need to identify these stocks with short interest, work out whether you should invest in them, and then trade in them via our contracts for difference (CFD) trading model. A great way to take advantage of the changes in the stock market.

Top examples of stocks with short interest

There have been numerous high profile examples of stocks with short interest over the past few years. The biggest of these was probably the recent GameStop saga, part of the meme stocks investing that have been occurring. This feared a large number of bearish traders on Wall Street suddenly deciding to sell their shares in the entertainment company. The fact that nobody initially bought up the shares meant that it was a classic example of one of those stocks with short interest.

However, a few individuals had other ideas and quickly brought up the stocks and started the whole meme stock phenomenon. Other recent examples of this have included the likes of AMC and Clover Health Investments. All of which are among the many assets which can be traded as CFDs at CAPEX.

Get Started with CAPEX

Experience a new level of trading with the right support when you need it. Sign up for a free account and trade smart with

Create Account

What do stocks with short interest tell us?

What stocks with high short interest tell us about the market

Stocks with high short interest indicate that there is market pessimism about the company in question. This bearish attitude suggests that the value of the stock will fall. As such you should be careful about the timing of when to buy this particular stock. At CAPEX, we give you the tools you need to identify when a stock has high short interest. This means that you’ll be able to spot how many outstanding shares there are in a company and decide whether you should trade in this brand or wait until it starts to regain the confidence of the market.

What do stocks with short interest tell you about a company

Successful investing always requires you to do plenty of research about that asset. Stocks with short interest are obviously hugely important for anybody willing to invest in the stock market. The concept of stocks with short interest comes with a lot of complicated theory, but it’s actually a pretty simple concept.

If you see a stock that lots of people are selling, but nobody else is buying, then it’s probably a good indication that investors don’t have a lot of faith in that company. This would be a stock with high short interest.

Conversely, if any stock sold is quickly snapped up at a high price, then it suggests that the company is on the up. This would indicate that it’s a stock with low short interest. Of course, things are rarely quite so cut and dry as this, but you’ll get all the help you need at CAPEX.

Knowledge is Power!

When it comes to your money - it's priceless.

An investment in learning how to trade always pays the best dividends. Get access to the right resources, tools and information so you can trade with all the information available!

Sign Up and enjoy our in-platform trading lessons

How do stocks with short interest interact with P/E ratios?

Both the stock with short interest and price to earnings ratio are tools that you can use at CAPEX to see whether you should invest in certain shares or not. We’ve already shown you that stocks with short interest shows you how many stocks are currently available after being sold. But the price to earnings ratio tells you how much earnings are generated in comparison to the share price. This can be used to see whether the stocks are performing better or worse than in the past, or it can be used as a comparison against another company’s stocks. Both of which are invaluable analytical tools for your trades.




Register an account on and start trading.


Send over your documents and verify your account.


Login into your account and deposit money.


Start trading with CFD’s and over 2100 other instruments.

Things to be careful of when trading stocks with short interest

While the concept of stocks with short interest is relatively easy to understand, it’s not something that should be taken lightly. This is because it requires a lot of expertise and experience to understand all of the indicators that illustrate short interest. You’ll need to know how the basic formula of working out short interest works. From here, you will also have to interpret this correctly to know when the stock with short odds is too good to pass up.

Experience needed to trade stocks with short interest

While our platforms at CAPEX are designed to be a user-friendly online broker that’s well-suited for all levels of investor, trading on stocks with short interest is rarely easy. It’s a tactic that’s most commonly used by those with plenty of experience in the realm of stock trading. Plus as we saw from the GameStop incident, even the most experienced of Wall Street traders have been burned by relying on this tactic too closely. As long as you remember that the stock with short interest ratio is just one of many tools you can use when online trading, you should be fine.

Consider other investment options  in addition to stocks with short interest

We’ve shown that a stock with short interest is an exciting trading option, but that it is also at risk of the rapid fluctuations of the market. The good news is that we, at CAPEX, host plenty more stable assets that you can easily add to your portfolio. These include all of the popular forex pairings for USD, EUR, GBP and so on. Plus adding commodities like gold and oil can be another way to diversify your investment portfolio. Just remember that all investments are risky by nature.

Conclusion – Helping you find stocks with short interest

Understanding how stocks with short interest works is a great way to learn more about how the stock market operates. It’ll help you see when there’s market skepticism about a particular stock, and learn when the market thinks that a stock is on the up. It’s a strategy that is reactive to the short-term fluctuations of the market which means that you should never rely on it too much.

However, at CAPEX, you’ll get all of the tools you need to see what kinds of stocks with short interest are available. This means that you can make an educated decision on whether to invest in one of these stocks. So join and stick with CAPEX to be the first in line to see all of the most exciting stock trading options.

Stocks With Short Interest – FAQ

🔮What are the stocks to short tomorrow?
❓Where can I get a most shorted stocks list?
👀How do I find short interest stocks?
📱Do I need to use a short interest tracker?
🔎What short interest charts should I check out?