RiskIntermediate
Stop Hunting
The alleged practice of a dealing desk broker deliberately triggering client stop-loss orders by temporarily manipulating prices, profiting from the resulting forced liquidations.
Last updated: February 10, 2026
1
A dealing desk broker can see where client stop-loss orders are clustered.
2
The broker or its algorithm temporarily widens spreads or shifts prices to trigger those stops.
3
Client positions are forcefully closed at the artificial price.
4
The price quickly returns to normal after the stops are triggered.
5
The broker profits from the forced liquidations.