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cover
What does cover mean?
For a short seller to buy shares back and close their bearish position. Mass covering during a squeeze is what rockets the price.
"The shorts had to cover, sending it up another 50%."
Origin
Standard trading term ('cover a short'); pivotal to short-squeeze mechanics discussed on WSB.
Frequently asked questions
What does 'cover' mean in trading?
It means a short seller buys shares back to close out their bearish position, ending the trade.
Why does covering drive a squeeze?
When many shorts are forced to buy back shares at once — to cover — that surge of buying pushes the price sharply higher, fueling a short squeeze.
Is covering the same as selling?
Not quite. Selling closes a long position; covering closes a short by buying the shares back.
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