What is Above the Market?
Above the market describes the price at which a person wants to buy or sell a security.
How Does Above the Market Work?
Let's say John Doe owns 100 shares today, but he doesn't want to take a loss, and the stock is trading right around $10. He in a sell order above the market, at $15 a share. When and if the stock gets near $15, the order be filled.of Company XYZ that he bought at $10 a share. He wants to sell the
The phrase also applies when buying. For instance, if John Doe wanted to buy Company ABC shares and they are trading at $15 right now, he couldin an order above the market at $12. When the price moves closer to $12, his order be filled.
Why Does Above the Market Matter?
Buying and selling above the market is usually done with limit orders. Often, people buy and sell above the market because they are betting that whatever momentum they're seeing in theprice continue to a certain level -- at which they plan to . The idea is essentially "buy lower and sell higher."
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