| || InvestHub.com's |
Finance Dictionary and Glossary of Investment Terms
gather in the stops
A trading strategy in which investors sell stocks in order to drive prices below a level at which stop orders are known to have been set by others. This triggers more selling, which in turn sets off more stop orders, accelerating the decline. In order to mitigate the effects of such a feedback loop, exchange officials sometimes suspend stop orders.
A trading strategy implemented for the purpose of driving down a stock's price through the transaction of large sell orders.
market strategy in which investors sell stocks to drive prices to a level that breaks through stop orders known to exist. Once the price is low enough, the stop orders become market orders and are executed, to create snowballing.