Understanding Market Orders and Stop Orders: Which Is Placed Above Market and Which Is Not?

All of the following orders are placed above the market EXCEPT:ABuy Stop – DayBSell Limit – GTCCBuy – MKTDBuy Stop – GTC

C – Buy – MKT

The order that is not placed above the market in the given options is “Sell Limit – GTC”.

Here’s a description of each of the orders and their place in the market:

A) Buy Stop – Day: This is an order placed above the market price, where the buy order is triggered only when the market price reaches or crosses a certain price level or stop price. This order is valid only for the day on which it is placed and expires at the end of the trading day.

B) Sell Limit – GTC: This is a sell order where the limit price is set above the current market price. The order remains active until it is executed, canceled, or expired.

C) Buy – MKT: This is a market order, which means that the trader wants to execute the buy order at the best available price in the market.

D) Buy Stop – GTC: This is similar to the Buy Stop – Day order, but remains active until it is executed, canceled, or expired. It is an order that is placed above the market price.

Therefore, the order that is not placed above the market in the given options is “Sell Limit – GTC”.

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