Stop Hunt

Market Terms

We don't know everything about the markets.  We're just devoted to learners.  Taken from those smarter than ourselves, here's how we define Stop Hunt.

A trading strategy based around attempting to force other traders out of their stop positions.  The stop hunter attempts to trigger the stop loss orders of other traders to trigger a temporary period of high volatility in the market in order to profit.  Stop hunting is typically not initiated by small, individual traders.  They must be executed by a party with significant buying power (significant enough to move the market in question).  With the necessary capital, they can push the price in the desired direction, trigger stop loss orders, and instigate the desired volatility.