What Is the Short Volume Ratio (SVR)?
The short volume ratio (SVR) measures how much of a day's volume was short selling — a first-hand read on short pressure. It is often confused with "short interest." This article clears it up.
What is the short volume ratio?
SVR = short volume ÷ total volume for the day. It shows how much of the day's trading was short selling, typically focused on the off-exchange share, ranging from 0% to 100%.
SVR vs short interest
- SVR — a daily flow ratio; high-frequency, short-term pressure.
- Short interest — shares still shorted and not covered; low-frequency (usually bi-weekly), a stock of positions.
- One is "today's action," the other "accumulated positions" — do not mix them.
How to read the level
- High SVR — heavy short selling today; more short pressure (could also be market-maker hedging).
- Low SVR — light shorting; longs relatively comfortable.
- Trend beats one day — sustained rises matter most.
Example (data only): "SVR up from 20% to 45% while institutional net buying turned to net selling" — rising short pressure + institutions turning sellers is a bearish-leaning feature that needs further confirmation.
Common mistakes
- Treating SVR as "how many people are shorting this stock."
- Ignoring market-maker hedging shorts (not necessarily bearish).
- Reading one day's number without the trend.
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This article is for educational and informational purposes only. It presents market data and does not constitute investment advice.