Trading Strategies
Covering a Short
Definition
What is Covering a Short?
Buying a securityA tradable financial claim or ownership interest, such as a share, bond, or fund unit. to close an existing short positionExposure that benefits when an asset's price falls..
Example in practice
How This Looks in Practice
The trader covers the short after the price falls 15%.
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Related Terms
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Momentum
The tendency of assets with strong recent performance to continue outperforming for a period.
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A persistent direction in price or market movement.
Trading StrategiesUptrend
A pattern of generally rising prices, often marked by higher highs and higher lows.
Investment AnalysisFundamental Analysis
The evaluation of economic, industry, company, and financial information to estimate an investment's value.