Order Placement: SLoBS (Sell Limit & Buy Stop Above Market)
An investor wishes to enter orders placed ABOVE the current market price of a stock. Under market order conventions, which order types are placed ABOVE market?
Memory hook: 'SLoBS over BLiSS'. Orders placed ABOVE the current market price are Sell Limits and Buy Stops (SLoBS). Orders placed BELOW the current market price are Buy Limits and Sell Stops (BLiSS).
Complete Analysis & Legal Rationale
Sell Limits are placed above market to sell at a higher, more favorable price. Buy Stops are placed above market to protect short positions or buy on upside breakouts.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
SLoBS (Sell Limit, Buy Stop) are placed ABOVE current market price.
BLiSS (Buy Limit, Sell Stop) are placed BELOW current market price.
MOC orders execute at the market close, regardless of price level.
Buy limits are placed below market.
Official Standard: Governs execution mechanics of orders placed above and below prevailing quotations.