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

  1. short coveringnoun

    the purchase of securities or commodities by a short seller to close out a short sale

ChatGPT

  1. 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.

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Numerology

  1. Chaldean Numerology

    The numerical value of short covering in Chaldean Numerology is: 8

  2. Pythagorean Numerology

    The numerical value of short covering in Pythagorean Numerology is: 2

Examples of short covering in a Sentence

  1. Kaname Gokon:

    I'm not seeing a lot of direction for the market, there is some short-covering on wheat and soy ahead of the USDA report.

  2. Tohru Sasaki:

    The U.S. economy is exceptionally strong relative to other countries, causing dollar short covering.

  3. Junichi Ishikawa:

    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.

  4. Ben Kwong:

    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.

  5. Peter Cardillo:

    Oil continues to be the main driver of the markets. It's the fear factor of oil continuing to move lower and its impact on oil debt around the world, the market will probably be led by short covering.

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"short covering." Definitions.net. STANDS4 LLC, 2024. Web. 1 May 2024. <https://www.definitions.net/definition/short+covering>.

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