Short-covering meaning

The buying of securities, stocks, or commodities in order to close out a short sale.
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The buying of securities or commodities to close out a short sale.
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A situation in which traders have sold securities that they didn’t 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.
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