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.
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References in periodicals archive ?
For now, the strategy de jour is a tactical short on Brent and West Texas, albeit with tight stops as the geopolitical risk volcano can easily erupt at any moment.
As such, he said putting 'tight stops' on trading positions would be important until all corrective threats have been fixed.
We urge investors to maintain tight stops and to monitor sales backlogs and demand closely.
Putting tight stops on issues still trading near resistance are advised to protect gains, he said.