Above the Market

The term Above the Market refers to a market order to buy or sell at a price set higher than the current stock price.

Above the Market

The term Above the Market refers to a market order to buy or sell at a price set higher than the current stock price.  Examples of above the market orders include:  a limit order to sell, a stop order to buy, or a stop-limit order to buy.


Above the Market Interpretation

Above the market strategies are often employed by momentum traders.  For example, a stop order would be placed above the market and above a resistance level to buy.  Should the stock price break through the resistance level and reach the stop price above the market then the investor will participate in any future upward trend.

Illustration of an "above the market" stock order.

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