Covering transaction

Operation to secure a contractual forward commitment (the purchase of any asset that had previously been sold short; in doing so, this purchase will close out the position). – The forced settlement of an exchange transaction if the counterparty fails to meet its obligations under the contract. – See cash margin, hedge transaction.

Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent!
University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/