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Below The Market

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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.

Related Definitions

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    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 ...
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  • Limit Order

    An order placed with a brokerage to buy or sell a set number of shares at a specified price or better. Limit orders also allow an investor to limit the length of time an order can be ...
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  • Market Order

    An order that an investor makes through a broker or brokerage service to buy or sell an investment immediately at the best available current price. A market order is the default option ...
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    • Stop-Limit Order

      An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will be executed at a specified price (or better) after a given ...
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    • Stop-Loss Order

      An order placed with a broker to sell a security when it reaches a certain price. A stop-loss order is designed to limit an investor's loss on a security position. Also known as a "stop ...
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    • Stop Order

      An order to buy or sell a security when its price surpasses a particular point, thus ensuring a greater probability of achieving a predetermined entry or exit price, limiting the ...
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