Buy To Cover

An order placed to close out a short position in a particular stock.


When an investor short sells a stock they are actually selling a security that they do not own. They must buy the security to "cover" these borrowed securities.



Short Selling Tutorial - Have you ever correctly predicted a stock's decline or wondered how to be profitable in a bear market? Here you can learn how short selling works and the risks involved in it.
Related Terms

Days to Cover

Short

Short Sell

Word Search:

Categories