HSX Forum

Playing & Trading Strategy

sure, covering is closing out a short position, just as selling is closing a long position

Posted by: ndmaster (a.k.a JonHH) on Aug 01, 23:33 in response to clonewars' post Covering

you buy a stock you think will go up.

you short a stock you think will go down. covering this position is a purchase, but since you are short, it zeros out the position.

the only two ways to spend your money are to buy or short. selling and covering are ways in which you increase the cash balance in your account.





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