The amount of insurance a trader holds on a given trading position. In forex, coverage signifies the amount of futures, forwards or options positions a trader is holding against their outright spot position. For an options trader, coverage represents the amount of the underlying asset combined with options positions which would make the trader either net long or net short.
Browse by Subjects
See All Related Terms »
cash flow statement
black box trading
American Psychological Association (APA):
Chicago Manual of Style (CMS):
Modern Language Association (MLA):