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.
Assume the current market price of a stock is 30:
● If you submit a sell MIT order at 33, and later the market price rises to 33, the sell MIT order will be triggered, become a market order, and begin to be filled at the closest price to 33 depending on volume at that price.
● If you submit a buy MIT order at 26, and later the market price drops to 26, the buy MIT order will be triggered, become a market order, and begin to be filled at the closest price to 26 depending on the volume at that price.
Moomoo Financial Inc. simulates advanced order types on its books and routes the order to its clearing broker when it reaches the trigger price. Moomoo Financial Inc. simulates market if touched orders with the following default triggers:
● Sell Simulated market if Touched Orders become limit orders when the last traded price is greater than or equal to the trigger price.
● Buy Simulated market if Touched Orders become limit orders when the last traded price is less than or equal to the trigger price.
Unless you select specific trading hours, advanced orders will only be triggered during regular trading hours or continuous trading session.