Buy To Cover


Also found in: Wikipedia.

Buy To Cover

To buy 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 lower than the price at which one short sold it. Likewise, one may buy to cover to avoid or pay a margin call, if it appears that one will lose in a short sale and the brokerage demands the return of cash or securities. See also: Maintenance margin.
References in periodicals archive ?
A report on the carbon price support scheme, which will bring in a minimum price for carbon permits that energy companies and heavy industry have to buy to cover their pollution, suggests it could end up giving climate policies a "bad name".
The Government are planning to bring in a minimum price for the carbon permits which energy firms and industry must buy to cover their pollution.
Hull are strong and have the finances to go out and buy to cover any injuries.
More technical strength on this momentum name could beget more buying as those short the stock buy to cover their losses.
Mortgage payment protection insurance, which homeowners are supposed to buy to cover the support removed by government,covers just 25% of existing mortgages and 35% of new mortgages sold.
In a statement made this morning, InsynQ Chairman and CEO John Gorst said, Those having sold short now seek to postpone the day when they must buy to cover.
By coupling Rapt and Business Objects technologies, customers will have powerful insights as they determine how much more they should buy to cover demand without risking costly oversupply.