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Finance: What Does "Away from the Market" Mean? 3 Views


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Description:

What does “Away from the Market” mean? Away from the market just means that a stock is moving away from its benchmark. This happens when the buy or sell price does not match the benchmark; it can be caused by things like an offering of new shares in which the offer price is higher than the price that the share is actually trading at.

Language:
English Language

Transcript

00:00

finance a la shmoop what does away from the market mean? limit orders that's what

00:08

this one's about you want to buy a hundred shares of amazork the finest [Person on computer looking at amazork]

00:12

seller of werewolf catching nets on the web but you don't want to pay more than

00:17

a grand a share for them and those shares are volatile, on days when there's

00:21

a full moon the stock shoots to 1,200 on days when the moon barely shows up the

00:26

stock often craters to right around a thousand so you put in your limit order

00:31

which is away from the market... Amazork is trading at $1,187 a share

00:38

this moment thanks to a half moon and you think it'll be two thousand dollars [Line increasing on graph of Amazork shark price]

00:41

a share in five years if what all those crazy astronomers are saying actually

00:46

holds water well but you want to be able to buy it at the right price you'll feel

00:51

like an idiot if you just pay 1,187 and then three months from now it's at 998

00:56

and you overpaid by 20-ish percent so you put in a limit order that is away [Man discussing limit orders]

01:02

from the market and note that away from the market can also work on a sell order

01:07

that's higher than market and you think about that for when the stock gets to

01:11

2000 so you wait and you wait preferably indoors and you know away from any open [Woman sitting by window and werewolf appears]

01:17

windows

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