Difference between Stop and Market if Touched order?
- Thread starter Saltynuts
- Start date
http://optionstradingbeginner.blogspot.com/2009/05/difference-between-stop-order-and.html?m=1
Was interested myself. Guess MIT order would be same as having a resting limit order except it will hit with size and lift the offer in case of buy.
Was interested myself. Guess MIT order would be same as having a resting limit order except it will hit with size and lift the offer in case of buy.
Robert Morse
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It would be best to check with your broker on what will trigger the stop and the "if touched?" Does it require a trade at that price or below? In general, they sound the same but in the case of a market of 16.00x16.01, 15.99X16.01 and 15.99x16.00 if there is no sale at 16 or lower, how will they both function?
if the price is going down, the use of MIT order is to buy. If the price is going down and your order is on 14 then if someone hit 14 your market order will be executed above.
There are more interresting orders - like auto pull orders or stop if the volume is below some amount and many others. It can be useful for short term/ scalping. Nothing special for longer term. But MIT can be useful for some ppl. But I see it as alternative for „normal” limit order (not stop)
I use conditional orders with IB when I want to get in/out. So: if double last on XYZ <= $X buy market of ABC.
ROFLMAO I remember moons ago, thought I was clever and use a MIT order instead of a stop, it wasn't a flash crash, but market was dropping faster than normal and when price got to almost my price, it jumped beyond it, so the price was never touched and I had in the end a rip roaring loss to now laugh about it. Instead of losing hundreds, was couple thousand.
Yep, this is why you should not be rigid with your exit because you can be on the wrong side very quickly. So I guess now you do a stop market order?
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LiVe + learn,LOL.I used a market order one time on a derivative exit; instead of the usual quick confirm= got nothing. My broker did answer the phone,LOL; + said dont worry about it; We are working on it that ,exchange went down, for hours .
I still use market order$ for exits/entry if they dont hit my limit order in a certain time.....................................................................................................