How is a market if touched order different from a Limit order?

How is a market if touched order different from a Limit order?

A limit order guarantees that an order is filled at a specified price level. However, there is no guarantee that it would get executed. Additionally, a limit order only allows for the whole quantity of shares to be bought or sold.A Market if Touched (MIT) order, on the other hand, has a higher chance of execution as the order initiates once the specified price is reached and gets executed at the next available price. This order, however, does not guarantee a price. It can also be considered an ideal alternative to limit order where it provides the flexibility of fractional trade to the investors.

    • Related Articles

    • How is a market if touched order useful to me?

      A market if touched(MIT) order is typically used to buy when the price of a stock is falling or to sell when a stock is rising. This order can be considered an alternative to limit orders when fractional orders are desired.However, since the MIT ...

    • What is Market if Touched order?

      A market if touched (MIT) order is an instruction to buy or sell a stock when a specified price, the order was placed at, is touched, even if it does so very briefly. When the price hits the level specified in the market if touched order, it turns ...

    • Are there any risks associated with placing a market if touched order?

      The Market if touched (MIT) orders are executed as market orders and hence get executed at the market price at that point. Hence the price at which the orderis executed may be higher or lower than the expected or specified price.

    • What is a limit order?

      A limit order is an order to buy or sell a stock at a specific price or better. Therefore, a buy limit order can only be executed at the limit price or lower, and a sell limit order can only be executed at the limit price or higher. While limit ...

    • When can you use a limit order?

      The best way to use the limit order facility is when you've decided that you will buy a stock only if it's price touches or goes below the price you want. Conversely, it might be a good idea to use limit order while selling a stock if you expect a ...