Buy Minus

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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.

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