DEFINITION of 'Above The Market'

An order to buy or sell at a price set higher than the current market price of the security. Examples of above the market orders include: a limit order to sell, a stop order to buy, or a stop-limit order to buy.

BREAKING DOWN 'Above The Market'

This is a strategy that is often used by momentum traders. For example, a stop order would be placed above the resistance level to buy. Should the security's price break through the resistance level, the investor may be able to participate in the upward trend.

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RELATED FAQS
  1. How do I decide at what price to put a limit when executing a stop limit order?

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  3. An investor owns 100 shares of LKI at $58. He needs to limit his loss to 5 points ...

    Free info on financial certification exams including study guides, exam questions, and much more! Read Answer >>
  4. What is the difference between a stop and a market order?

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  5. Are stop limit orders for stocks only?

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