Short Covering

What does it mean?
The purchase of shares previously sold short in order to close the open position.

In Other Words...
In order to make a profit, a short seller hopes to cover shorts below the original selling price.

Also referred to as buy to cover or buy back.

Related Links
Short Selling Tutorial - Have you ever correctly predicted a stock's decline or wondered how to be profitable in a bear market? Here you can learn how short selling works and the risks involved in it.

Related Terms
Bear | Buy Back | Buy To Cover | Days to Cover | Naked Shorting | Selling short | Short | Short Interest | Short Sale Rule | Short Squeeze

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