Market If Touched

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Market If Touched ("MIT") is a stock purchasing term.

An "MIT order" will be executed when the price is touched (when a predetermined value has been reached and the futures contract will trade or bid at the price.)

Stock buyers can place an MIT order to buy or to sell. An MIT order-to-buy becomes a market order if and when the commodity trades, or is offered, at a specified price or lower; an MIT order to sell becomes a market order if and when the commodity trades or is bid at a specified price or higher.

An MIT order differs from a limit order in that the order becomes a market order once the MIT price is reached. The order must be filled, even if the market takes a turn in the opposite direction.

[edit] Example

The order reads to sell 7 June Deutsche marks 64.83 MIT. Let's say that a trade occurs at 64.83 then the next three trades are 64.82, 64.81, and 64.80. Our order is filled at 64.81. This would not be the case with a limit order to sell 7 June D-Marks 64.83. We would not necessarily have a fill at 64.83.

An MIT order to sell is started when the market trades at or above the entered price.

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