chase a stock(redirected from Chased a Stock)
Chase a Stock
To place limit orders for a stock that is increasing in price. One places the limit orders at successively higher prices in order to take advantage of the stock's capital appreciation when it is rising while not exposing oneself to the possibility that it will not rise to a higher price. For example, one may place limit orders at $5.50, $5.70, and $5.90. This means that if the stock goes to $5.60 and then falls to $5, the stock chaser will only be lose the amount invested in the first tier of purchases. On the other hand, if the stock rises to $8, one receives the capital appreciation on all three tiers of purchases. See also: Average Up.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
chase a stock
To attempt to buy a stock that is rising in price by placing orders at increasingly higher prices.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.