Covering

In foreign exchange dealings covering ordinarily consists in paying one bill of exchange (draft) with another. For example, a foreign exchange dealer in New York draws and sells a bill on London due in 60 days. When the bill matures (falls due) he takes it up (pays it) with a demand bill (bill payable immediately) which he has purchased.: Again: A dealer in New York draws and sells a bill on London and buys a bill on Paris for an equivalent amount which he forwards to London in cover or discharge (in payment) of the bill which he sold on London.