Those traversing south-west state both uncovered prospects (8)
I believe the answer is:
horizons
'prospects' is the definition.
(horizons can mean one's prospects or options)
'those traversing south-west state both uncovered' is the wordplay.
I cannot really understand how this works, but
'south' could be 's' (abbreviation) and 's' is found in the answer.
'state' could be 'ri' (Rhode Island abbreviation) and 'ri' is found within the answer.
This explanation may well be incorrect...
(Other definitions for horizons that I've seen before include "Lines where sky and Earth appear to meet" , "Limits of knowledge" .)