short covering
short covering
Definition
☆ short covering
noun
the buying of securities or commodities to close out a short sale
short covering Finance Definition
A
situation in which traders have sold securities that they didnt own, expecting
prices to continue falling. When the trend reverses, they must cover their
shorts by purchasing back what they sold, often at a loss. Because many
traders are buying, prices rise, resulting in a short-covering rally.
Browse dictionary entries near short covering
- short circuit
- short
- shorn
- shoring
- shoreward
- shoreline
- shoreless
- shorebird
- shore patrol
- shore leave
