Above the Market
Above the Market refers to when a trader enters an order to purchase or sell a security at a price that is set above the current price of the security in the marketplace.
These are a type of market order that is the group that includes a stop limit order to buy. A trader can use the Above the Market trading order entry when they engage in the trading style know as momentum trading. When a trader is engaging in momentum trading his strategy is to buy into a security’s price strength, and then capture gains as the security continues to gain in value. In this case the trader would use the Above the Market order to buy when the security is moving upward above a certain price.