| Gather in the Stops | |
 A trading strategy used to drive down a stock's price through the transaction of large sell orders, which usually have the effect triggering preset stop-loss orders which further enhances the effect. |
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 This strategy may seem confusing at first, but is actually rather simple. Gathering-in-the-stops occurs when traders sell large quantities of stock with the intention of triggering sell prices on stop-limit orders. Once a set of stop prices is reached, new sell orders are activated and transacted, causing the stock price to fall once again. This effect is continuously repeated, causing the activation of more stop-limit orders and therefore a rapid decrease in the stock's price. Some exchanges may decide to suspend stop orders in order to mitigate this continuously repeating effect. |
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 The Basics Of Order Entry - Taking control of your portfolio means knowing when to use particular orders and if they pose added costs. Understanding Order Execution - The way in which your broker fulfills your orders can affect your costs. The Nitty-Gritty Of Executing A Trade - Ever wonder what happens behind-the-scenes when you buy or sell a stock? Read on and find out! The Stop-loss Order - Make Sure You Use It - It's a simple but powerful tool that can help you implement your stock-investment strategy. Find out how. |
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