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.

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References in periodicals archive ?

6 ( ANI ): The stock markets on Tuesday morning rebounded from the Monday slump, aided by positive global cues and short covering.

Sensex rebounds 200 pts in morning trade

Short covering involving the dollar and the euro was observed during the day but the market otherwise lacked fresh incentives, other analysts said.

Dollar briefly falls to lower 92 yen amid concerns about Big 3 bailout

Nickel Short covering, profit taking and then more short covering saw prices rise from $4,880 per tonne to $6,090 on Wednesday, back to $5,200, and then a $5,430 close for a $540 overall gain.

Metals Market: Copper cutbacks catalyst to frenzy

Raw sugar futures rose to a two-month high on Wednesday, boosted by fund short covering, while cocoa regained much of the prior session's losses.

World Commodities - Raw sugar touches two-month high

A bout of short covering had been expected at some point given the concentration of bearish bets on oil prices over the last two months.

Oil prices surge in short-covering rally

Meanwhile, EURGBP is stable around 0.7950 after it posted a good short covering rally on Thursday after the market was caught short in to 0.7900.

Pound-Dollar (GBPUSD) Extends Overnight Losses to Break Below 1.8375

dollar retreated to lower 128 yen territory Friday in Tokyo after a moderate rise on short covering and a lift from the euro's surge against the yen.

Dollar slips back to lower 128 yen range in Tokyo

Had it not been for a strong short covering rally in lead which took the forward price up by 3.9 per cent on Friday, we should have seen, once again, a clean sweep of net losses over the week in the main contracts.

Lead only metal not yet beaten

The strength in risk appetite didn't really dampen Treasuries as short covering, technical buying, and declines in EGB and JGB rates further pressed yields lower.

Treasury Market Summary:

Coffee futures on ICE rose on Tuesday, largely erasing the previous session's losses on short covering, traders said, while cocoa slipped as dealers awaited further indications on the quality and quantity of the main crop in West Africa.

Coffee futures rise

Summary: The EUR-USD short covering rally extended above 1.4100, with the market gunning for stops above 1.4110-20 and at 1.4130-50.

Euro Rallies Above 1.41 on Short Covering

Prices of 10-year Japanese government bond futures extended their gains slightly Tuesday morning on short covering spurred partly by a strong performance by Tokyo stocks.