Covering

Definition:

Using forward currency contracts to predetermine the domestic currency amount of an expected future foreign receipt or payment. Also, the buying back ('covering') of a short position.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Up volume

When a stock closes increases in value on a particular day, the volume in that stock is considered up volume. Related: Down volume.

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