Stock Market

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Above the Market

The above the market is a kind of order that will enable the trader to fix a price for either buying or selling of a particular stock. The price will usually be much above the current market price. There are various kinds of such order like stop order to buy, stop limit order to buy and so on. If used prudently then above the market orders can be great strategically tool in the hands of the investor that will help them gain more. Both buy and sell orders are given at a time when the price is actually above the current market price. Buy order are set in such a way because the trader presumes that even after buying the stock at a high price the upwards trend will further continue. 

Though there are various orders most of them are based against the common motto buy low and sell high. This is because the trader under this above the market order will presumably set a price that is above the current market price. So he will buy at a high price as the trader believes that the price increasing trend is due to some genuine reasons and not just out of chance. So he also is confident that as per the market indicators this upward trend will remain for some more time.