Trading Strategies

Covering a Short

Definition

What is Covering a Short?

Buying a security to close an existing short position.

Example in practice

The trader covers the short after the price falls 15%.

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The tendency of assets with strong recent performance to continue outperforming for a period.

A persistent direction in price or market movement.

A pattern of generally rising prices, often marked by higher highs and higher lows.

The evaluation of economic, industry, company, and financial information to estimate an investment's value.

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