What is Short Covering?
Short Covering — When traders who sold short buy back to close positions, which can push the price up sharply (a short squeeze).
In simple terms
A rally on short covering can be fast but short-lived.
Why Short Covering matters when you invest
Understanding short covering helps you make better-informed decisions when you invest and trade on ROAR by DP TradeKING. Open a free account to put it into practice — ₹0 delivery brokerage and zero-commission direct mutual funds.
Short Covering — frequently asked questions
What is Short Covering?
When traders who sold short buy back to close positions, which can push the price up sharply (a short squeeze).
What does Short Covering mean in the stock market?
When traders who sold short buy back to close positions, which can push the price up sharply (a short squeeze). A rally on short covering can be fast but short-lived.
Can you give an example of Short Covering?
A rally on short covering can be fast but short-lived.
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