# Covering transaction

- Canonical URL: https://www.gerhardmerk.de/covering-transaction
- Post ID: 590714
- Modified: 2023-07-25T21:01:30+00:00
- Language: en

## Definition

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/

## Machine-readable

- Generator: Merk Knowledge 1.1.1