The act of an
investor raising his/her
buy limit price as a result of steadily rising
prices for the
security involved. When an investor makes a buy
limit order, he/she sets a (relatively low) price at which the
broker is to buy the security. If, however, the price increases significantly and shows no sign of approaching the buy limit price, then the investor risks not buying the security and missing out on further increases. One bids up in order to avoid this; while it means the investor must spend more to buy the security, it opens up the opportunity for a large
return.