A stop-loss is your own order: a price level at which your position is closed automatically. A stop hunt is a price move that triggers many such stops at once, because they sit at the same obvious places: round numbers, the last low, the day's high. The stop is your tool, the stop hunt is how the market behaves where stops cluster. Nothing about it is personal.
| Criterion | Stop-Loss | Stop hunt |
|---|---|---|
| What it is | An order you place in advance | A price move that hits clustered stops |
| Who triggers it | You, by placing it | Supply and demand: thousands of stops in one place are liquidity |
| Typical location | Anywhere you choose | Round numbers, last swing low or high, the day's extreme |
| What happens next | Position closed, loss capped | Often a fast reversal once the stops are absorbed |
| Is it aimed at you? | No, it is your decision | No, the market does not know your order, only the level |
| What you control | Level and distance | Only whether your stop sits in the cluster or beyond it |
Whenever a position is open. The question is not whether to set a stop, but where.
A stop hunt is not a tool you use but a pattern you plan for: do not place the stop exactly on the round number or the obvious low, place it with some distance beyond, and size the position for the wider distance.
Does my broker hunt my stops?
On exchanges with a central order book and with regulated brokers there is no evidence for it. The effect arises because many traders choose the same levels. Whoever seeks liquidity there finds it, without knowing you exist.
Educational content, not investment or tax advice. Neutrally contrasted, not a recommendation of either approach. Trading leveraged products carries risk of total loss.