What is a market if touched order?

A market-if-touched (MIT) order is a conditional order that becomes a market order when a security reaches a specified price, even if it does so only briefly. When using a buy market-if-touched order, a broker will wait until the security reaches the specified level before purchasing the asset.

What is the difference between limit and limit if touched?

A Limit if Touched is an order to buy (or sell) an instrument at a specified price or better, below (or above) the market. An LIT order is similar to a stop limit order, except that an LIT sell order is placed above the current market price, and a stop limit sell order is placed below.

What is market if touched Interactive Brokers?

A Market if Touched (MIT) is an order to buy (or sell) an instrument below (or above) the market. Its purpose is to take advantage of sudden or unexpected changes in share or other prices and provides investors with a trigger price to set an order in motion.

How are limit orders and market orders different?

A market order is an order to buy or sell a security immediately. This type of order guarantees that the order will be executed, but does not guarantee the execution price. A limit order is an order to buy or sell a security at a specific price or better.

What is limit if touched order?

A Limit if Touched is an order to buy (or sell) an instrument at a specified price or better, below (or above) the market. Using a Limit if Touched order helps to ensure that, if the order does execute, the order will not execute at a price less favorable than the limit price.

What is a market order?

A market order is an order to buy or sell a stock at the best available price. Generally, this type of order will be executed immediately. However, the price at which a market order will be executed is not guaranteed.

What is a market not held order?

What Is a Not-Held Order? A not-held order, usually a market or limit order, gives a broker both time and price discretion to get the best price available. As a result, the broker is not held responsible for any potential losses or missed opportunities that result from their best efforts.

Are market orders always executed?