Short Covering
Imagine you're a trader who's betting against a company's stock, hoping its price will plummet. You've shorted the shares, meaning you've borrowed them from a broker and sold them, planning to buy them back later at a lower price and pocket the difference. But then, the unthinkable happens – the stock starts rising, and you're forced to buy back the shares at a higher price to cover your position. This, my friends, is the dreaded scenario known as short covering.