What is Liquidity Grab?
A price movement designed to trigger stop-loss orders in order to "collect" liquidity for a larger move in the opposite direction.
In-Depth Explanation
Practical Example
"The price spiked above yesterday's high, triggered all the stops (liquidity grab), and then immediately reversed 100 pips lower."
Related Terminology
Stop Hunt
A deliberate attempt to push the price of an asset to a level where many traders have placed their stop-loss orders.
Smart Money
Capital controlled by institutional investors, central banks, and other financial professionals.
Market Maker
A firm or individual that provides liquidity to a market by being ready to buy and sell at all times.
Bull Market
A market condition where prices are rising or expected to rise.
Tradeable Instruments Affected
Tactical How-To Guides
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