What types of orders are placed above the current market price?

The correct answer identifies buy stop orders and sell limit orders as the types of orders that are placed above the current market price. A buy stop order is used by an investor to buy a security once its price rises to a specified level, which is higher than the current market price. This order is often used in a bullish strategy, signaling that an upward movement has been confirmed.

Similarly, a sell limit order is placed above the current market price, allowing an investor to sell a stock at a specified price or higher. This can be used to capitalize on anticipated price increases or to set profit targets for a security that an investor believes is currently undervalued but is expected to rise.

In contrast, the other options do not provide a correct pairing of order types that align with being placed above the market price. For instance, buy limits, which are designed to purchase a security at a specific price or lower, are not above the current market price. Sell stops are intended to limit losses on existing positions and are placed below the market price. Additionally, while limit orders can be placed at various price levels (both above and below current prices), the term "market orders" refers to orders placed at the best available price and do not specify a price, thus