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Finance Dictionary and Glossary of Investment Terms
Used in the context of general equities. Process by which the exercise of stop orders in a declining or advancing market causes further downward or upward pressure on prices, thus triggering more stop orders and more price pressure, and so on.
A situation in which the exercise of stop orders in a declining (or advancing) market or specific stock creates further downward (or upward) pressure, triggering more stop orders, magnifying the decline (or advance).