What does short covering mean?
Definitions for short covering
short cov·er·ing
This dictionary definitions page includes all the possible meanings, example usage and translations of the word short covering.
Princeton's WordNet
short coveringnoun
the purchase of securities or commodities by a short seller to close out a short sale
ChatGPT
short covering
Short covering, also known as buying to cover, refers to the act of purchasing securities to close out an open short position. It involves buying back the same security that was initially sold short, in order to return the borrowed securities to the lender and close the short position. It is typically initiated when the price of a shorted security increases significantly and the short seller wants to prevent further losses. Overall, it refers to the act of mitigating losses when the price of a shorted asset increases.
Matched Categories
Numerology
Chaldean Numerology
The numerical value of short covering in Chaldean Numerology is: 8
Pythagorean Numerology
The numerical value of short covering in Pythagorean Numerology is: 2
Examples of short covering in a Sentence
As long as management continues to execute, you will see another level of short-covering as we move through the year.
There is little reason to buy commodity currencies like the Aussie right now, and its gains were fuelled mostly by short covering, the only short-term lift the Aussie, kiwi and the Canadian dollar could receive are from participants shifting around their positions ahead of Friday's U.S. jobs data.
The market has been oversold after the recent selloff, and local investors calm down a bit in view of a relatively stable mainland markets so far this morning with short covering giving support, on the Greece crisis, people are expecting that there will be an agreement, while China's inflation data also gave support to a rebound in the market.
Fundamental and momentum shorts have incurred very large mark-to-market losses and they have been squeezed out of their positions, we saw over the last couple of days some serious short covering in the name.
If the Fed came out rather dovish, delayed any potential rate hikes, etc, that would lead to something of a rally. So I think it's just short-covering ahead of the Fed.
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"short covering." Definitions.net. STANDS4 LLC, 2024. Web. 18 Apr. 2024. <https://www.definitions.net/definition/short+covering>.
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