covering

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Covering

Using forward currency contracts to predetermine the domestic currency amount of an expected future foreign receipt or payment. Also, the buying back ('covering') of a short position.

Covering

1. Informal for buying back.

2. The act of completing a transaction. For example, covering a long position may mean making payment for securities one has bought.

2. Informal; to close a position.

covering

a means of protecting the domestic currency value of the future proceeds of an international trade transaction, usually by buying or selling the proceeds of the transaction in the FORWARD MARKET for foreign currencies.

covering

a means of protecting the domestic currency value of the future proceeds of an international trade transaction, usually by buying or selling the proceeds of the transaction in the FUTURES MARKET for foreign currencies. CPI see CONSUMER PRICE INDEX.