Above The Market

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.

RELATED TERMS
  1. Stop-Limit Order

    An order placed with a broker that combines the features of stop ...
  2. Bracketed Buy Order

    A buy order that is accompanied by a sell limit order above the ...
  3. Bracketed Sell Order

    A sell order on a short sale that is accompanied (or "bracketed") ...
  4. Limit Order

    An order placed with a brokerage to buy or sell a set number ...
  5. Away From The Market

    An expression that is used when the bid on a limit order is lower ...
  6. Buy Limit Order

    An order to purchase a security at or below a specified price. ...
Related Articles
  1. Managing Wealth

    Narrow Your Range With Stop-Limit Orders

    With stop-limit orders, buyers protect themselves from prices too high for their tastes.
  2. Trading

    Which Order To Use? Stop-Loss Or Stop-Limit Orders

    Stop-loss and stop-limit orders can provide different types of protection for investors seeking to lock in profits or limit losses. Investors need to know how each type of order works to know ...
  3. Trading

    How To Start Trading: Order Types

    The types of orders you use can have a large effect on your trading performance, so understanding the different order types is important to your success.
  4. Investing

    Understanding The Basics of A Stop-Limit Order

    There are many techniques used by investors and traders to restrict losses or lock in gains. The stop-limit order is one such technique.
  5. Markets

    Stop Limit Orders

    A stop limit is an order to sell or buy a stock once it reaches a certain level, but only if the shareholder can obtain a specified price.
  6. Investing

    Understanding Buy Stop Orders

    A buy stop order is an order to buy a stock at a specific price above its current market price.
  7. Markets

    Explaining Market Orders

    A market order is the most common order used to purchase a financial security.
  8. Trading

    The Basics Of Trading A Stock

    Taking control of your portfolio means knowing what orders to use when buying or selling stocks.
  9. Investing

    Protect Yourself From Market Loss

    There are several simple strategies you can use to protect yourself from downside risk.
  10. Trading

    How To Place Orders With A Forex Broker

    Learn how to set each type of stop and limit when trading currencies.
RELATED FAQS
  1. How do I decide at what price to put a limit when executing a stop limit order?

    Use a stop-limit order to reduce losses on your investment. Discover tips on what price to set the limit on your order to ... Read Answer >>
  2. How can I use a stop order to limit my losses on a long stock position?

    Learn about stop orders, different stop order types, and how to use stop-loss orders and stop-limit orders to limit losses ... Read Answer >>
  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?

    Learn about market orders and stop orders, how they are used and executed, and the main difference between stop orders and ... Read Answer >>
  5. Are stop limit orders for stocks only?

    Find out what kinds of financial instruments can be purchased or sold using stop-limit orders, and learn why other kinds ... Read Answer >>
  6. What is the difference between a stop order and a stop limit order?

    Learn the differences between a stop order and a stop limit order. Traders use these as stop losses and regular investors ... Read Answer >>
Hot Definitions
  1. Put Option

    An option contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying security ...
  2. Frexit

    Frexit – short for "French exit" – is a French spinoff of the term Brexit, which emerged when the United Kingdom voted to ...
  3. AAA

    The highest possible rating assigned to the bonds of an issuer by credit rating agencies. An issuer that is rated AAA has ...
  4. GBP

    The abbreviation for the British pound sterling, the official currency of the United Kingdom, the British Overseas Territories ...
  5. Diversification

    A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique ...
  6. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
Trading Center