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Cover

What does it mean?
The act of completing a transaction in order to remove any obligations.

In Other Words...
Cover is a general term used in many different instances. For instance, an investors that recently puchased a security will have to cover the puchase by depositing the necessary funds. Or, an investor may wish to cover his/her short position by purchasing the stock. Or, a portfolio manager may wish to cover his/her risk exposure by buying an offsetting position.

Related Links
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Related Terms
Covered Call | Portfolio | Short Covering | Short Selling

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Image Financial LLC is not a registered broker-dealer, but rather works in coordination with fully licensed broker-dealers, SIPC-insured clearing firms, and private trading firms to provide licensed and non-licensed clients with access to career trading programs and direct access trading capabilities.  Our firm and our network affiliates strongly recommend that all clients fully read and acknowledge all SEC risk disclosure statements available on our site and our affiliate broker-dealer websites prior to engaging in any live trading activity, and acquire a solid understanding of the risks inherent in active "day" trading.