What Is Buy To Cover ✦ < EASY >

: You borrow shares from your broker and sell them at the current market price. Monitor Price : You wait for the price to drop.

: You short 100 shares at $50. The price rises to $60. You are forced to buy to cover at $60 (total $6,000). You lose $1,000 plus fees. Common Order Types what is buy to cover

: The repurchased shares are returned to the lender, ending your obligation. Profit and Loss Examples : You borrow shares from your broker and

: You buy the same number of shares back from the market. 000). You lose $1