Wednesday, November 07, 2012 5:42:40 PM
Buy To Cover.. works for EPGL as well as any other.
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Definition of 'Buy To Cover'
A buy order made on a stock or other listed security that closes out an existing short position. A short sale involves selling shares of a company that one does not own, as the shares are borrowed and need to be re-paid at some point. This order, by buying an equal number of shares as were borrowed, "covers" the sale and the shares can be returned to the original lender of them. The lender will typically be the investor's own broker/dealer but their broker may have had to borrow the shares from a third party.
Here is simpler explanation.
For the investor who has bet on a stock price going down, the hope is to be able to buy the shares back at a lower price than the original short was executed at. There is no timetable for the short investor to follow, so they can wait as long as they wish to repurchase the shares. However, if the stock begins to rise above the price the shares were shorted at, the investors' broker may require them to execute a buy to cover order as part of a margin call. To prevent this from happening, investors should always keep enough buying power in their account to make a "buy to cover" trade based the current market price of the stock.
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However, if you do not have the time to "play" and only are looking for the direct profits, then you better hold onto your positions tight and LOCK yourself in for a long strategic play. In any case, The next 7 Market days from today might as well be considered "Free Lunch" for the taking before their "Progress Report" on the 16th of November.... It can turn the handle very slowly, or kick in the door...
__________________________________________________________________
Definition of 'Buy To Cover'
A buy order made on a stock or other listed security that closes out an existing short position. A short sale involves selling shares of a company that one does not own, as the shares are borrowed and need to be re-paid at some point. This order, by buying an equal number of shares as were borrowed, "covers" the sale and the shares can be returned to the original lender of them. The lender will typically be the investor's own broker/dealer but their broker may have had to borrow the shares from a third party.
Here is simpler explanation.
For the investor who has bet on a stock price going down, the hope is to be able to buy the shares back at a lower price than the original short was executed at. There is no timetable for the short investor to follow, so they can wait as long as they wish to repurchase the shares. However, if the stock begins to rise above the price the shares were shorted at, the investors' broker may require them to execute a buy to cover order as part of a margin call. To prevent this from happening, investors should always keep enough buying power in their account to make a "buy to cover" trade based the current market price of the stock.
__________________________________________________________________
However, if you do not have the time to "play" and only are looking for the direct profits, then you better hold onto your positions tight and LOCK yourself in for a long strategic play. In any case, The next 7 Market days from today might as well be considered "Free Lunch" for the taking before their "Progress Report" on the 16th of November.... It can turn the handle very slowly, or kick in the door...
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