A stock market is similar to a share market. The key difference is that a stock market helps you trade financial instruments like bonds, mutual funds, derivatives as well as shares of companies. A share market only allows trading of shares.
Anirudh S., , Basics of Stock Trading, How stock exchanges ensure the traders counter party risk, How stock trading take place, What is long / short / long unwinding / short covering, What is Trade Plan
Hi,
Your Question 1 :: What is short covering?
Short covering means purchasing of securities by an investor to close a short position in the stock market. For example traders sell a stock short because they believe the stock’s price will fall. But if the stock’s price goes up, the trader may choose to reduce her exposure to a short position. This process is called short covering.