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. 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.
To place a Market If Touched order in Classic TWS:
- Use the Customize Layout followed by Order Columns feature to display the Aux. Price column
- Click the Bid price to create a Sell order; click the Ask price to create a Buy order;
- Select MIT as the order type; the name of the Aux. Price field changes to Trigger Price
- Enter a Trigger Price in the Trigger Price field
- Select the appropriate time in force
- Hit Transmit (or T) to submit the order
Find out more on the Market If Touched orders page of the IBKR website.