Cover

A long or (short) position in an instrument that offsets partially or wholly a short (long) position in another.More specific:(1) To take out a forward foreign exchange contract through forwards or futures to limit or eliminate exposure to currency fluctuations.
(2) To close out a short position by buying currency or securities which have been sold.
(3)The amount above 1.0x of a debt service coverage ratio.(4) With derivatives a covered call is the sale of call options while long the underlying instrument (Also known as a buy-write). The covered call creates a synthetic short put position and the writer of the option gives up any upside potential beyond the strike of the calls in exchange for the premium income. The covered put is the sale of put options while short the underlying. A covered warrant is covered either by other warrants or by holdings of the underlying which entitles the holder to buy existing securities in a company at a preset price for a given period.