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

Still, some of the recent gains in tech, particularly within the software area, might be driven by short covering, analysts say.

From The Wall Street Journal • Apr. 16, 2026

The IGV’s breakout above the 50-day moving average “could lead to continued short covering and potentially momentum buying,” Mizuho managing director Daniel O’Regan wrote in a Thursday note.

From MarketWatch • Apr. 16, 2026

Kizemchuk sees the Arms Index as an indicator of whether a rally is being supported by “real buying” or by short-term flows like short covering.

From MarketWatch • Apr. 11, 2026

It was some oversold buying, some short covering, and options expiration.

From Barron's • Apr. 1, 2026

Having nearly reached the summit, two females, with a short covering hanging loose from their shoulders, suddenly appeared at some little distance before them, snatched up each a small basket, and scampered off.

From An Account of the English Colony in New South Wales, Volume 2 by Collins, David