Market if Touched Orders

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.

Notes:

The Reference Table to the upper right provides a general summary of the order type characteristics. The checked features are applicable in some combination, but do not necessarily work in conjunction with all other checked features. For example, if Options and Stocks, US and Non-US, and Smart and Directed are all checked, it does not follow that all US and Non-US Smart and direct-routed stocks support the order type. It may be the case that only Smart-routed US Stocks, direct-routed Non-US stocks and Smart-routed US Options are supported.


Products Availability Routing TWS
Bonds US Products Smart Attribute
EFPs Non-US Products Directed Order Type
Forex Time in Force
Futures
FOPs
Options
Stocks
Warrants
View Supported Exchanges|Open Users' Guide


Example

Market if Touched Buy Order

Order Type In Depth - Market if Touched Buy Order

Step 1 – Enter a Market if Touched Buy Order

XYZ has a market price of $16.61. You decide to buy 100 shares, but you don't want to enter the market until/unless the price drops to $16.58. Create a BUY order, and select MIT in the Type field to specify a market if touched order (MIT). In the Trigger Price field, enter the trigger price of $16.58. Transmit the order, which will be held in the system until the trigger price is touched, and will then be submitted as a market order.


Step 2 – Order Transmitted

You've transmitted your market if touched order. The order will be held in the system until your trigger price of 16.58 is touched, and will then be submitted as a market order.

Assumptions
Action BUY
Qty 100
Order Type MIT
Market Price 16.61
Trigger Price 16.58
Step 3 – Market Price Falls, Market Order Submitted

The market price of XYZ begins to fall and touches 16.58, which is your trigger price. A market order to buy 100 shares at 16.58 is submitted and filled.

Assumptions
Action BUY
Qty 100
Order Type MIT
Market Price 16.58
Trigger Price 16.58

Interactive Brokers Canada Inc. is a member of the Canadian Investment Regulatory Organization (CIRO) and Member - Canadian Investor Protection Fund. Know Your Advisor: View the CIRO AdvisorReport. Trading of securities and derivatives may involve a high degree of risk and investors should be prepared for the risk of losing their entire investment and losing further amounts. Using borrowed money to finance the purchase of securities involves greater risk than using cash resources only. If you borrow money to purchase securities, your responsibility to repay the loan and pay interest as required by its terms remains the same even if the value of the securities purchased declines. Interactive Brokers Canada Inc. is an order execution-only dealer and does not provide investment advice or recommendations regarding the purchase or sale of any securities or derivatives. Our registered office is located at 1800 McGill College Avenue, Suite 2106, Montreal, Quebec, H3A 3J6, Canada.


Know Your Advisor: View the CIRO AdvisorReport