Question
Which of the following means that a trader is buying
back the shares from the market, which he has initially borrowed and sold, to limit the losses from upward price movement of the share?ÂSolution
Short Covering occurs when short sellers buy back shares they had borrowed and sold earlier, to close their positions and limit losses leading to upward price movement and sometimes driving bullish momentum. Note - Short Selling means a trader borrows shares from a broker and immediately sells them on the open market, expecting the price to fall.
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Select the figure from among the given options that can replace the question mark (?) in the following series.
Select the figure that can replace the question mark (?) in the following series.
Select the figure from among the given options that can replace the question mark (?) in the following series.