Quick Answer
A Market-if-Touched (MIT) order rests until the price touches its trigger, then becomes a market order, so it guarantees a fill, not the exact price. An MIT is the mirror of a stop: a buy MIT sits below the market (buy the dip) and a sell MIT sits above it (sell into a rally).
An MIT becomes a market order just like a plain stop, so it also guarantees a fill and not a price. The twist is placement: an MIT sits on the opposite side of the market from a stop, and it exists for the opposite reason.
The Mirror of a Stop
An MIT and a stop share the same "becomes a market order" mechanic but sit on opposite sides of the market.
- Market-if-Touched (MIT) order: an order that rests until the market touches (trades at or through) the trigger price, then becomes a MARKET order. Like a plain stop, it guarantees a fill once touched, not the exact price.
- Same mechanic, opposite side of the market: a stop sits on the far side of the move that hurts your position; an MIT sits on the side that gives you a better entry or a profit exit. The MIT is the mirror image of the stop.
Buy MIT and Sell MIT
Placement is the reverse of the same-direction stop.
- Buy MIT: placed BELOW the current market price. Intent: buy on a dip, getting in at a better, lower price if the market falls to the level.
- Sell MIT: placed ABOVE the current market price. Intent: sell into a rally or take profit, getting out at a better, higher price if the market rises to the level.
Because an MIT becomes a market order, the fill can print slightly away from the trigger, exactly like a triggered stop. It secures the entry or exit, not a guaranteed price.
Intent Is Opposite a Stop's
The placement can look identical to a stop's, but the purpose is reversed, and this is where the exam sets its trap.
- MIT = enter better or take profit; stop = limit a loss or catch a breakout. A buy MIT below the market seeks a favorable entry, whereas a sell stop below the market is a loss-limiting exit. Same "below the market" location, opposite purpose, opposite reason for use.
Think of it this way: a stop is a defensive tripwire set on the side you fear; an MIT is a shopping order set on the side you are hoping for. Want to buy cheaper? Leave a buy MIT below the market, like a bargain hunter waiting for a dip. Long and want to cash out into strength? Leave a sell MIT above the market, ready to sell into a rally. The stop reacts to the move against you; the MIT reaches for the move you want.
Exam Tip: Gotchas
- The signature trap: a buy order below the market is a buy MIT (buy the dip), while a sell order below the market is a sell stop (stop-loss on a long). Same location, opposite order name and opposite intent. Watch for answer choices that give the right price location but the wrong order name or purpose.
Direction Matrix: Stop vs. Stop-Limit vs. MIT
This one table is the most important artifact in the unit. It lines up every order side by placement, what it becomes, and what it guarantees.
| Order | Placed vs. market | Becomes when triggered | Guarantees |
|---|---|---|---|
| Buy stop | Above | Market | Fill, not price |
| Sell stop | Below | Market | Fill, not price |
| Buy stop-limit | Above | Limit | Price (or better), not fill |
| Sell stop-limit | Below | Limit | Price (or better), not fill |
| Buy MIT | Below | Market | Fill, not price |
| Sell MIT | Above | Market | Fill, not price |
Memory Aid: A stop chases the price the same way you would run: buy stop up, sell stop down. An MIT is the mirror, so it flips: buy MIT down (buy the dip), sell MIT up (sell the rally).
Exam Tip: Gotchas
- An MIT is the mirror of a stop: buy MIT BELOW the market, sell MIT ABOVE the market, the reverse of the same-direction stop (buy stop above, sell stop below). Read the placement and the order name together, not just one of them.
- An MIT guarantees a fill once touched, not the price. Because it becomes a market order, the fill can print away from the trigger in a fast market, just like a triggered stop. It is not a limit order and does not promise a price.