Skip to main content
0
Search products
Search
Mugs
Tees
Hoodies
Search products
Search
Chat
Share
Free Shipping
Menu
Mugs
Tees
Hoodies
Back to urbandictionary.com
Pro Customization
Create unique products with your own words and definitions
Preview
Personalize Your Design
Your Word
Your Definition
(FINANCE) the situation in which a [derivatives] trader with a short position is wrong about the behavior of [the market]. Having sold shares of stock he doesn't own, he is now compelled to buy them at a higher price than he sold them for (in order to reimburse whomever he borrowed the shares from). If the short position was taken by writing naked options (i.e., issuing call options of stock the trader doesn't happen to have), then the trader has to buy shares of [underlying stock] in order to honor the options. It's extremely expensive for traders to have to cover their shorts.
Text fits
Save
Cancel
🤖
Shopping Assistant
Online
Hey! 👋 I'm your shopping assistant. What are you looking for?
Ask about products
AI-generated responses. Verify claims.