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A short sale which you have “covered” by borrowing securities under a stock loan, or at least obtaining a “locate” from a stock lender. Compare with a naked short where you sell outright, without getting in a borrow, in the hope you can acquire stock at a cheaper price by the time of settlement. Naked shorts are disruptive, leading to settlement failures, and are generally frowned upon, and regulated against in the EU, by the lights of the EU Short Selling Regulations.
See also