Short covering


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Short covering

Used in the context of general equities. Actual purchase of securities by a short seller to replace those borrowed at the time of a short sale.

Short Cover

The act of buying a security one has previously sold short in order to close a position. In order to make a profit on a short cover, one must buy the security at a price less than the price at which one sold it. It is also simply called a cover.
References in periodicals archive ?
What's more, the equity has climbed above peak call open interest at the 45 strike during the past several sessions and could benefit from an added boost from short covering, as roughly eight percent of the security's float has been sold short.
It looks like the reason behind the jump is a classic case of short covering.
The high short interest on these stocks makes them attractive due to the potential for short covering to exacerbate the magnitude of their rallies.