Buy Minus

AAA

DEFINITION of 'Buy Minus'

A type of order where a client instructs a broker to purchase a stock at a price below the current market price. Buy minus orders are used when a trader is hoping to acquire a stock when its price declines briefly. Traders can further restrict buy minus orders by specifying a limit, or the highest price at which the stock should be acquired.

INVESTOPEDIA EXPLAINS 'Buy Minus'

An example is placing a buy order at $25 for a stock that is currently trading at $27. A related concept is the sell plus order, in which a client instructs a broker to sell a stock at a price above the current market price. Traders can also place restrictions on the minimum price at which the stock can be sold with a sell plus limit order.

RELATED TERMS
  1. Buy Signal

    An event or condition that alerts investors to purchase a particular ...
  2. Buy Quote

    The best available price to buy a security at any given time ...
  3. Market Order

    An order that an investor makes through a broker or brokerage ...
  4. Defensive Buy

    Securities or investments that are perceived as being lower risk ...
  5. Order

    An investor's instructions to a broker or brokerage firm to purchase ...
  6. Buy

    1. A recommendation to purchase a specific security. A buy rating ...
Related Articles
  1. Target Prices: The Key To Sound Investing
    Economics

    Target Prices: The Key To Sound Investing

  2. Principal Trading and Agency Trading
    Investing Basics

    Principal Trading and Agency Trading

  3. Finding Solid Buy-And-Hold Stocks
    Investing Basics

    Finding Solid Buy-And-Hold Stocks

  4. Should You Buy Stock Or An ETF?
    Mutual Funds & ETFs

    Should You Buy Stock Or An ETF?

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center