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
The factors that have been driving the market have been some bargain hunting, some short covering and speculating off the belief that we have seen the worst of things, investors are taking a pause, stepping back and looking at what's the next driving element.
The weakness in the dollar seen due to the rate cut expectations and a lot of short-covering due to the sudden jump in prices are behind the sharp move, with this move, the target for gold investors has moved to $1,400 and the key is to sustain this momentum for this week. On the longer term, it is going to be difficult to stay above $1,400 as with better conditions for riskier assets due to rate cuts, investors might move to equities.
There's a certain amount of short-covering that's going on that's helping to drive the market.
Short-covering has led to a little bit of a rally.
We're probably seeing a bit of a dead cat bounce in these banks today because the trend is still down, there may be a few brave souls looking to dip back in but the volumes are not particularly exciting. You're probably seeing some short covering from the offshore players as well.
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"short covering." Definitions.net. STANDS4 LLC, 2024. Web. 30 Apr. 2024. <https://www.definitions.net/definition/short+covering>.
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