short covering (Meaning)
Wordnet
short covering (n)
the purchase of securities or commodities by a short seller to close out a short sale
Synonyms & Antonyms of short covering
No Synonyms and anytonyms found
short covering Sentence Examples
- The recent rally in the stock market was largely attributed to short covering.
- Short covering occurs when traders who have bet against a stock buy it back in order to close their positions.
- When short covering occurs on a large scale, it can lead to a sharp increase in the stock price.
- Short covering can be triggered by a variety of factors, such as positive news or a change in market sentiment.
- Institutional investors often engage in short covering to reduce their risk exposure.
- Short covering can be a profitable strategy for traders who correctly predict market reversals.
- However, short covering can also lead to losses if the market does not move as expected.
- The Securities and Exchange Commission (SEC) has regulations in place to prevent excessive short covering.
- Short covering can be a catalyst for market volatility, particularly in highly shorted stocks.
- Investors should be aware of the potential risks and rewards associated with short covering before engaging in this strategy.
FAQs About the word short covering
the purchase of securities or commodities by a short seller to close out a short sale
No synonyms found.
No antonyms found.
The recent rally in the stock market was largely attributed to short covering.
Short covering occurs when traders who have bet against a stock buy it back in order to close their positions.
When short covering occurs on a large scale, it can lead to a sharp increase in the stock price.
Short covering can be triggered by a variety of factors, such as positive news or a change in market sentiment.
