// TRADING TERMINOLOGY
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
Institutional players need high liquidity to enter large positions. They may push the price into a "pocket" of stops (e.g., just above a recent high) to fill their sell orders.
Practical Example
"The price spiked above yesterday's high, triggered all the stops (liquidity grab), and then immediately reversed 100 pips lower."
Related Terms
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