The covering of a short position by purchasing a long contract, usually resulting from the short sale of a commodity See: Short covering, stock buyback Also used in the context of bonds The purchase of corporate bonds by the issuing company at a discount in the open market Also used in the context of corporate finance When a firm elects to repurchase some of the shares trading in the market
- Purchase of a long contract to cover a short position, usually arising out of the short sale of a commodity Also, purchase of identical securities to cover a short sale