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Limit if touched order

A limit if touched (LIT) order is an instruction to submit a buy or sell limit order when the client-specified trigger price is hit. A LIT order is not guaranteed a specific execution price and may execute significantly away from its trigger price. A LIT order is similar to a stop limit order, except that a sell LIT order is placed above the current market price, and a sell stop limit order is placed below.

A LIT order follows the "buy low and sell high" rule: the buy trigger price needs to be lower than the current market price, and the sell trigger price needs to be higher than the current market price.

A sell LIT order must be entered above the current market price to gain the profit on a long position. 

A buy LIT order must be entered below the current market price to gain the profit on a short position.


1. Examples

● Buy LIT order

Assuming you short sell stock XYZ at 30, you submit a buy LIT order with a trigger price of 15 and an order price of 16 when the market price is 40. If XYZ's market price falls to 15 or lower, a buy limit order will be submitted automatically to the clearing broker and filled at 16 or lower. 

● Sell LIT order

Assuming stock XYZ has a current price of 10, you submit a sell LIT order with a trigger price of 15 and an order price of 14. If XYZ's market price rises to 15, a sell limit order will be submitted automatically to the clearing broker and filled at 14 or higher. 


2. Order time

Clients can place LIT orders at any time via the app. 


3. Time-in-force 

Clients can set a LIT order's time-in-force. If the order is not filled in full during the validity period, the unfilled portion will be cancelled automatically by the system. If the order fails to be executed due to risk management or other reasons, it will be in "Failed" statues, and the system will not continue to submit a limit order.


4. Trigger time

If a LIT order meets the trigger condition during the preset trading period, the system will automatically submit a limit order to the clearing broker. 

The LIT order will not be triggered if the trigger condition is met outside the preset trading period.


5. Explanations and notes

5.1 After a LIT order is triggered, there is no guarantee that a limit order will be successfully placed due to reasons such as insufficient buying power or positions.

5.2 After a LIT order is triggered, the system will place a limit order automatically. However, there is no guarantee that it will be filled. If the order is not filled during the time-in-force, it will be cancelled automatically by the system.

5.3 After a LIT order is triggered, whether it is filled or not, the trigger conditions will not be effective again. Please place a new order if necessary.

5.4 After a LIT order is triggered, the system will place a limit order. For clients' convenience, the order details will be displayed in the original LIT order.

5.5 After a LIT order is triggered, the system will submit a limit order only when the client has enough maximum buying power or positions in the account, and margin may be used. 

5.6 Orders cannot be executed in multiple directions at the same time. If the order quantity is greater than the current position, the order will not be executed. For example, a buy and a buyback cannot be executed simultaneously; the same applies to a sell and a short sale. 

5.7 A LIT order will only be triggered during the preset trading period.

5.8 Advanced orders are simulated by Futu AU based on the basic orders and are irrelevant to those advanced orders provided by specific exchanges. Please refer to the corresponding order introduction page for more details.

Disclaimer

Limit if Touched Order is an advanced order type provided by Futu AU for the client's convenience. While Futu AU endeavors to provide reliable trading services, there can be no guarantee to the absolute reliability of the order algorithm. Futu AU shall not be held liable for any loss or damage arising from any failure to execute an order due to network interruption, server abnormality, and other factors beyond its control.