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Market If Touched (MIT)

A Market If Touched (MIT) order is a type of conditional order that becomes a market order once a specified price is reached or "touched." Unlike a limit order, which guarantees a specific price, an MIT order guarantees execution at the next available price once the trigger price is met. Traders use MIT orders to take advantage of price movements and ensure that their orders are executed when the market reaches their desired price level.

Example

A trader sets a Market If Touched order to buy a stock at $100. Once the stock price reaches $100, the order is triggered, and the stock is purchased at the next available market price.

Key points

A conditional order that turns into a market order once a specified price is reached.

Guarantees execution at the next available price after the trigger price is met.

Used by traders to take advantage of price movements in the market.

Quick Answers to Curious Questions

It is a conditional order that becomes a market order when a specified price is reached, ensuring execution at the next available price.

An MIT order guarantees execution once the price is touched, while a limit order guarantees a specific price but not execution.

Traders use MIT orders to capitalize on price movements and ensure their orders are executed when the market reaches a certain level.
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