Rolling a Stop Down(redirected from Rolls the Stop Down)
Rolling a Stop Down
To reduce a stop price to keep profiting from a short position. For example, suppose one sells short 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 lock in profit). If the price appears to be trending downward, the holder may roll the stop down to $16 to try for higher gains.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved