Short covering

Short covering,

Definition of Short covering:

  1. A short-term rise in the trading price of a security or futures contract due to short-sellers buying their way out of their positions.

  2. The buying in of stocks or other securities or commodities that have been sold short, typically to avoid loss when prices move upward.

How to use Short covering in a sentence?

  1. This market condition develops because short covering and not fundamental demand is fueling the rising price trend.

Meaning of Short covering & Short covering Definition