Cover

What Does Cover Mean?
The act of completing a transaction in order to remove any obligations.

Investopedia explains Cover
Cover is a general term used in many different instances. For instance, an investor that recently purchased a security will have to cover the purchase by depositing the necessary funds. Or, an investor may wish to cover his/her short position by purchasing the stock. Additionally, a portfolio manager may wish to cover his/her risk exposure by buying an offsetting position.

Filed Under: Active Trading

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