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Cover

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Definition

(1) Purchasing futures to offset a short position (same as Short Covering); see Offset, Liquidation ; (2) to have in hand the physical commodity when a short futures sale is made, or to acquire the commodity that might be deliverable on a short sale.

Related Terms

Other terms related to 'Cover' starting with the letter 'C'

Commodity Pool Operator CPO, Congestion, Class of options, Curb Trading, Covered Option

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Table of Contents

Trading commodity futures and options

Who trades in commodity futures and options and why?

Can futures and option trading meet my investment goals?

What to watch out for in Commodities Trading

What are commodity futures and option contracts?

How do I go about trading futures or option contracts?

What are my contractual obligations?

What is the role of the CFTC in protecting investors?

Commodity Futures Trading risk disclosure document

How does risk affect my futures and options returns?

Strategies for reducing commodity futures and options risk

Risk factor: Options vs. Futures

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