| purchases that close out short sales on stocks or commodities. |
| short covering n. The buying of securities, stocks, or commodities in order to close out a short sale. |
Short Covering
The purchase of shares previously sold short in order to close the open position.
Investopedia Commentary
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
The Short And Distort - Stock Manipulation In A Bear Market
See also: Bear, Buy Back, Buy To Cover, Days to Cover, Naked Shorting, Selling short, Short, Short Interest, Short Sale Rule, Short Squeeze