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 into a market order and is executed at the next best price. This price can be higher or lower than the specified price. For example, you are interested in a stock that has its current market value at $22.5 per share. You place a market if touched order with the condition to buy 1 quantity of share at a price of $21.5 dollars. The moment the price of the share falls to $21.5, even if it is just for a few seconds, your order gets converted into a market order and gets executed at the market price at that point. A market if touched order is valid for 90 days and will get canceled if not executed.
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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 ...
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 ...
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 stop order?
A stop order, also referred to as a stop-loss order, is an order to buy or sell a stock once the price of the stock reaches a specified price, known as the stop price. When the stop price is reached, a stop order becomes a market order.A buy stop ...
Can extended hours trade orders be placed during market hours?
Yes. An extended hours trade order can be placed at any hour of the day by following the steps mentioned on the linkhere. The orders can get executed during pre-market hours, market hours, or post-market hours Pre-Market hours: 04:00 AM EST 09:30 AM ...