Above the Market

Above the Market
An order to buy or sell at a price set higher than the current market price of the security. Examples of above the market orders include: a limit order to sell, a stop order to buy, or a stop-limit order to buy.
This is a strategy that is often used by momentum traders. For example, a stop order would be placed above the resistance level to buy. Should the security's price break through the resistance level, the investor may be able to participate in the upward trend.
Stock Basics Tutorial - If you're new to the stock market and want the basics, this is the tutorial for you! The Basics Of Order Entry - Taking control of your portfolio means knowing when to use particular orders and if they pose added costs. Ten Steps to Building a Winning Trading Plan - It's impossible to avoid disaster without trading rules - make sure you know how to devise them for yourself. Trailing-Stop Techniques - The important decision to exit a position must be based on more than emotion if you want to be a disciplined trader.