What is Market if Touched order?

A market if touched (MIT) order is an instruction to buy or sell a stock when a specified price, the order was placed at, is touched, even if it does so very briefly. When the price hits the level specified in the market if touched order, it turns into a market order and is executed at the next best price. This price can be higher or lower than the specified price. For example, you are interested in a stock that has its current market value at $22.5 per share. You place a market if touched order with the condition to buy 1 quantity of share at a price of $21.5 dollars. The moment the price of the share falls to $21.5, even if it is just for a few seconds, your order gets converted into a market order and gets executed at the market price at that point. A market if touched order is valid for 90 days and will get canceled if not executed.