Difference between STOP Order and Market-If-Touched (MIT) Order

Stop Order is actually quite similar to Market-If-Touched (MIT) order.
The difference between Stop Order and MIT order is basically on the placement of predetermined price that triggers its execution (i.e. �Stop Price� for Stop Order and �Trigger Price� for MIT Order) relative to the current market price of the security.

* For Sell order, the Stop Price for a Sell Stop Order is placed below the current market price of the security, whereas the Trigger Price for a Sell MIT Order is placed above the current market price of the security.
Note:
Sell Stop Order is a normally used for "Sell To Close� order, which is a order to sell to close the long position you previously entered.
Sell MIT Order is a normally used for �Sell To Open� order, which is a order to sell in order to open/enter a short position.

* For Buy order, the Stop Price for a Buy Stop Order is placed above the current market price of the security, whereas the Trigger Price for a Buy MIT Order is placed below the current market price of the security.
Note:
Buy Stop Order is a normally used for �Buy To Close� order, which is a order to buy to close the short position you previously entered.
Buy MIT Order is a normally used for �Buy To Open� order, which is a order to buy in order to open/enter a long position.


















For the list of other types of order, go to: Types of Orders in Trading.

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