Tight Stop
(redirected from Tight Stops)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.