Gather in the Stops

A form of manipulative trading where large amounts of a stock is shorted in order to drive down prices and trigger stops. The institution or person behind the trades usually knows where the stops are located and are in large amounts. By forcing the prices low enough to trigger the stops, the stops would turn into sell orders, thereby further depressing the price and allowing the trader/institution to reap a profit from covering at the lower price.

Related Terms

Popular Articles