Below The Market

Filed Under »
Dictionary Says

Definition of 'Below The Market'

An order to buy or sell a security at a price that is lower than the current market price. For example, a trader can place a limit order to buy a stock at a specified price that is below the current price. The order would only be filled if the specified price or better was available. While order execution is not guaranteed, placing an order in this manner, below the market, helps ensure that the desired price, or better, is achieved.

Can also be a  price or rate that is lower than the current prevailing conditions in an open market. Goods or services that are offered at a lower price than the "going," or typical, rate can be said to be below the market.

Investopedia Says

Investopedia explains 'Below The Market'

Traders and investors who want to try to achieve a better price or position may enter an order to buy below the market. A limit order to buy allows traders to specify the price at which they are willing to purchase a security; if the limit order to buy is filled, the order will be filled at the specified price or better. A below market order to sell allows traders to quickly unload a position.

Real estate properties are sometimes sold at below the market values, meaning they are offered at lower prices than comparable properties. Such properties are called BMV, below market value. Properties may be sold below their market value when the owners are faced with some type of financial difficulty such as bankruptcy, divorce, probate or if they must relocate quickly.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Above The Market

    An order to buy ...
  2. Limit Order

    An order placed ...
  3. Market Order

    An order that an ...
  4. Stop-Limit Order

    An order placed ...
  5. Stop-Loss Order

    An order placed ...
  6. Stop Order

    An order to buy ...
  7. Iceberg Order

    A large single ...
  8. Non-Directed Order

    A directive by a ...
  9. Good Through

    An order to buy ...
  10. Kill

    To cancel a ...

Articles Of Interest

  1. The Nitty-Gritty Of Executing A Trade

    Ever wonder what happens behind the scenes when you buy or sell a stock? Read on and find out!
  2. Getting A Divorce? Understand the Rules Of Dividing Plan Assets

    Learn how different rules of asset handling apply to various retirement plans.
  3. Marriage, Divorce And The Dotted Line

    Does signing a prenuptial agreement put your marriage on shaky ground, or is it just smart planning?
  4. State Laws Dictate Division Of Joint Property

    In breakup, divorce or death, community or common law will determine how property is divided.
  5. Understanding Order Execution

    Find out the various ways in which a broker can fill an order, which can affect costs.
  6. Trailing-Stop Techniques

    The important decision to exit a position must be based on more than emotion if you want to be a disciplined trader.
  7. The Basics Of Trading A Stock

    Taking control of your portfolio means knowing what orders to use when buying or selling stocks.
  8. A Look At Exit Strategies

    Setting appropriate exit points should help you avoid taking premature profits or running losses.
  9. Why can't I enter two sell orders on the same stock?

  10. The Stop-Loss Order - Make Sure You Use It

    It's a simple but powerful tool to help you implement your stock-investment strategy. Find out how.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center