Sentences with phrase «cover the short position by»

At a future point in time, the short seller will cover the short position by buying it in the market and repaying the loaned stock to the broker.

If the price increases above the offer price, dealers can cover their short position by exercising an over-allotment option (also referred to as a green shoe option) by either increasing demand in the case of covering a short position or increasing supply in the case of over-allotment option exercise.

Not exact matches

By bunching large buy orders in the last few minutes of trade, it also leaves traders who had shorted stocks earlier with no choice but to buy them back and cover their positions.

The underwriters may close out any covered short position either by exercising their option to purchase additional shares, in whole or in part, or by purchasing shares in the open market.

But be warned: ranges get broken, so you would be wise to consider placing a sell stop limit (to cover your long position on an unexpected fall through your buying price) and a buy stop limit (to cover your short position on an unexpected rise through your selling price) to protect yourself from losses caused by wild price movements.

Pros: balance sheet friendly, highly liquid, supports long and short positions Cons: have to roll futures positions, can not precisely target duration exposure as not all major tenors are covered by futures contracts.

For example, if a stock rises 15 % in one day, those with short positions may be forced to liquidate and cover their position by purchasing the stock.

This risk is compounded by the fact that during a short squeeze or buy - in (discussed in more detail in Risks Of Short Selling), the short seller may be forced to cover the short position at an artificially high price that may only be temporary in nashort squeeze or buy - in (discussed in more detail in Risks Of Short Selling), the short seller may be forced to cover the short position at an artificially high price that may only be temporary in naShort Selling), the short seller may be forced to cover the short position at an artificially high price that may only be temporary in nashort seller may be forced to cover the short position at an artificially high price that may only be temporary in nashort position at an artificially high price that may only be temporary in nature.

Profits earned by the manager on covering the short position are distributed to syndicate members pro-rata.

One of the main drivers of large sustained trends is the fact that the market continues to weed - out the people betting against it (there are more than you'd think), remember that when a trader goes short and bets against a bull market, if the market goes up they must cover that position by buying, this in turn leads to further bullishness and a swarm of fresh orders.

Congestion (1) A market situation in which shorts attempting to cover their positions are unable to find an adequate supply of contracts provided by longs willing to liquidate or by new sellers willing to enter the market, except at sharply higher prices; (2) in technical analysis, a period of time characterized by repetitious and limited price fluctuations.

For example, if a stock rises 15 % in one day, those with short positions may be forced to liquidate and cover their position by purchasing the stock.

This figure is reduced by the value of any in - the - money covered options and does not include shares held as cash positions, shares held short, or cash in the core money market.

Specific strategies for reducing or «hedging» market exposure may include buying put options on individual stocks or stock indices, writing covered call options on stocks which the Fund owns or call options on stock indices, or establishing short futures positions or option combinations (such as simultaneously writing call options and purchasing put options) on one or more stock indices considered by the investment manager to be correlated with the Fund's portfolio.

That means value investing has had to get more sophisticated — and, one might argue, riskier — by taking more short positions, as Einhorn does, which can bankrupt someone who shorted a stock at $ 20 and has to cover that short at $ 100; by piling on more debt; or by investing in situations where a total loss is possible.

Because while a short - term disability could be covered by a healthy emergency fund, an extended disability is much more likely to deplete your family's savings and put you in a difficult position unless you have some way of replacing your lost income.

• Access to loans (in CEDEX Coins) through diamond investment portfolios • Transparent payment for diamond sales • Ability to cover borrowing and collateral fees by opening a short position through the CEDEX platform

A resume, as well as a cover letter for caregiver position, should be short, to the point and relevant to the job description provided by the employer in the advertisement.

Having a high level of short interest and a high number of days to cover may be a great indication of negative sentiment, and with a higher number of days to cover, the price increase can be magnified as short - sellers attempt to close out their positions by buying the securities on the market and driving prices higher.