Tight Stop

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Tight Stop

The act or practice of raising a stop price to minimize losses from a long position. For example, suppose one buys a stock at $20 with a stop price of $18 (meaning the stock will be sold automatically if the price hits $18 in order to prevent further losses). If the price appears to be trending downward, the holder may put in a tight stop at $18.60 to try to keep from losing more money.
References in periodicals archive ?
Our strategy covers relatively tight stops and reasonable, nearby targets.
We urge investors to maintain tight stops and to monitor sales backlogs and demand closely.
Trading against the trend is risky, however tight stops just above 152.