Tight Stop

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.
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References in periodicals archive ?
From this perspective, the trade thesis of long USD/JPY trade bears limited downside and allows for a tight stop.
"One has to be very cautious on the long positions and keep the tight stop losses to safeguard from the volatility as booking an early loss is far better than holding it on hopes of the rise resulting in the increase of loss," said Shiv Prakash Equity Investment Analyst - Technical of Mac Capital Advisors.
This requires both luck to buy at the right time and discipline to implement tight stop loss strategy," said Dr Azzam.