The expression refers to the grind like movement of mills. This phenomenon is a chain reaction incited by people covering their positions. It can appear basically anytime, even when the market is quiet and this occurrence can not really be predicted.
Of course it is a problem only for those who got caught offside and are reluctant to cover their positions at market.
It usually happens like this:
The market starts going against the bulls or the bears, the trader wants to get out, but not at the "worst price", the market price, but one tick lower. Since the market moves with retracements most of the time, it is completely probable. This is why people are reluctant to hit market.
Say some longs get out and it drives the market 1 tick higher, the trader now has to hit 1 price higher to get out. Some other people cover, which drives the market 1 tick higher which forces some more people to get out, which drives the market again 1 tick higher. This is a chain reaction, the market is not fast, but the trader sees this move and he wants to get out. He clicks higher and higher, but the market still hasn`t given him a downtick. Unless this chain reaction is over or he accepts to hit market, he will have to stay in the grind and lose several ticks.
There have been extreme examples of grinds, when the algorithms started a chain reaction by covering their positions and the whole move stopped 150 ticks away.
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