The term sell plus order refers to broker instructions to sell a stock at a price that is above the current market. Sell plus orders are placed by traders hoping to take advantage of a short-term advance in a stock's market price.
A trader will issue a sell plus order to their broker when they would like to sell a stock under very specific circumstances. Generally, there are two market conditions that can result in the execution of a sell plus order:
A trader would like to sell shares of Company XYZ, but she would like to take advantage of a near term increase in the price of the company's stock. The trader places a buy plus order for 1,000 shares of stock at a price of $22.00; however, the current market price is $20.50.
This trade will execute if the price of Company XYZ's stock ticks up to $22.00 or moves past $22.00.