short covering

American  

noun

Finance.

1. purchases that close out short sales on stocks or commodities.

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short covering British  

noun

1. the purchase of securities or commodities by a short seller to meet delivery requirements

2. the securities or commodities purchased

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Example Sentences

“These things kind of take on a life of their own, whether it’s short covering, or people jumping on board, the effect is the same,” Saluzzi said.

From MarketWatch

Most of the stock buying on U.S. regional banks comprised of hedge funds buying back stock that was borrowed for the purpose of short bets, or so-called short covering, Goldman said.

From Reuters

Goldman Sachs said in a note on Friday short covering in the so-called U.S. macro products, which include equity index and exchanged-traded funds, reached the largest amount seen since November 2020.

From Reuters

"Even with significant short covering in NVDA, it is the fourth most shorted stock in the U.S.," he noted.

From Reuters

He said that based on his interactions with market participants, most of the short covering came from high frequency trading hedge funds.

From Reuters