ELI5: Explain Like I'm 5

short covering in stock market

Short covering is when an investor closes a short position in a stock by buying the stock. When an investor shorts a stock they are borrowing it from someone else, to then sell it. Later on they have to buy the stock in order to give it back to the person they borrowed it from. This buying of the stock to close the short is called short covering. It usually happens when the stock price is rising and the investor makes a profit.