Below The Market

An order to buy or sell a security at a price that is lower than the current market price. For example, a trader can place a limit order to buy a stock at a specified price that is below the current price. The order would only be filled if the specified price or better was available. While order execution is not guaranteed, placing an order in this manner, below the market, helps ensure that the desired price, or better, is achieved.

Can also be a price or rate that is lower than the current prevailing conditions in an open market. Goods or services that are offered at a lower price than the "going," or typical, rate can be said to be below the market.

Traders and investors who want to try to achieve a better price or position may enter an order to buy below the market. A limit order to buy allows traders to specify the price at which they are willing to purchase a security; if the limit order to buy is filled, the order will be filled at the specified price or better. A below market order to sell allows traders to quickly unload a position.

Real estate properties are sometimes sold at below the market values, meaning they are offered at lower prices than comparable properties. Such properties are called BMV, below market value. Properties may be sold below their market value when the owners are faced with some type of financial difficulty such as bankruptcy, divorce, probate or if they must relocate quickly.


Investment dictionary. . 2012.

Look at other dictionaries:

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  • To be long of the market — Long Long, a. [Compar. {Longer}; superl. {Longest}.] [AS. long, lang; akin to OS, OFries., D., & G. lang, Icel. langr, Sw. l[*a]ng, Dan. lang, Goth. laggs, L. longus. [root]125. Cf. {Length}, {Ling} a fish, {Linger}, {Lunge}, {Purloin}.] 1. Drawn …   The Collaborative International Dictionary of English

  • To be on the long side of the market — Long Long, a. [Compar. {Longer}; superl. {Longest}.] [AS. long, lang; akin to OS, OFries., D., & G. lang, Icel. langr, Sw. l[*a]ng, Dan. lang, Goth. laggs, L. longus. [root]125. Cf. {Length}, {Ling} a fish, {Linger}, {Lunge}, {Purloin}.] 1. Drawn …   The Collaborative International Dictionary of English

  • To go long of the market — Long Long, a. [Compar. {Longer}; superl. {Longest}.] [AS. long, lang; akin to OS, OFries., D., & G. lang, Icel. langr, Sw. l[*a]ng, Dan. lang, Goth. laggs, L. longus. [root]125. Cf. {Length}, {Ling} a fish, {Linger}, {Lunge}, {Purloin}.] 1. Drawn …   The Collaborative International Dictionary of English

  • Away From The Market — When the bid on an order is lower (or the ask price is higher) than the current market price for the security. In this case, the bid/ask spread is above or below the current price of the stock …   Investment dictionary

  • market rate — ➔ rate1 * * * market rate UK US noun [S] (also going rate) COMMERCE ► the amount of money that something costs at a particular time: the market rate for sth »That is the current market rate for any domain name registration. »They put it out at a… …   Financial and business terms

  • market-if-touched (MIT) GLOBEX — An MIT order to buy becomes a market order if and when the instrument trades at a specific or lower trigger price. A sell MIT is placed above the market; a buy MIT is placed below the market. Chicago Mercantile Exchange Glossary …   Financial and business terms

  • market-if-touched (MIT) open outcry — An MIT order to buy becomes a market order if and when the instrument trades at a specific or lower trigger price. A sell MIT is placed above the market; a buy MIT is placed below the market. Chicago Mercantile Exchange Glossary …   Financial and business terms

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