Above the Market

GlossaryEditor

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Buying or selling above the market refers to pending orders to buy or sell at a price higher than the current market price for the item being traded (forex, stocks, etc.). Orders to trade above the market include a buy stop order and a sell limit order. Buy stop orders can be used by momentum traders, who wait until price has broken above a resistance level on the assumption that if price exceeds resistance, momentum will carry it higher. Use of a sell limit order is usually based on the assumption that if price reaches a certain level, there is a probability that it will fall.
 
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