To sell short means to sell a “borrowed” security with the intention to buy back at a lower cost. A “buy to cover” is the closing of a short sell position. We see gains based on the difference between the sell and buy points of the play.
To sell short means to sell a “borrowed” security with the intention to buy back at a lower cost. A “buy to cover” is the closing of a short sell position. We see gains based on the difference between the sell and buy points of the play.