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What is a market if touched order (MIT)?

A market if touched (MIT) is an order to buy or sell 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. Investors may be waiting for excessive strength (or weakness) to cease, which might be represented by a specific price point. MIT orders can be used to determine whether or not to enter the market once a specific price level has been achieved. This order is held in the system until the trigger price is touched, and is then submitted as a market order. An MIT order is similar to a stop order, except that an MIT sell order is placed above the current market price, and a stop sell order is placed below.

Jason Toledo

Jason brings more than 15 years of experience in online trading. Prior to starting ToledoTrade in 2019, Jason held senior and executive level positions at Scottrade, OptionsHouse and Zacks Trade. Jason is passionate about educating self-directed traders and is a leader and expert in the online trading industry.

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