Gather In The Stops
A trading strategy of driving down a stock's price by selling large amounts of stock in order to trigger preset stop-loss orders, which in turn enhances the decline of the stock.
Investopedia Commentary
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 stop 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, triggering more stop orders and therefore a rapid decrease in the stock's price. Some exchanges may decide to suspend stop orders to mitigate this continuous effect.
Related Links
The Basics Of Order Entry
The Nitty-Gritty Of Executing A Trade
The Stop-Loss Order - Make Sure You Use It
See also: Exchange, Nasdaq, NYSE, Order, Sell, Stop Order, Stop-Limit Order
gather in the stops