Question

Explain the difference between a market-if-touched order and a stop order. 

   Explain the difference between a market-if-touched order and a stop order.
Options, Futures, and Other Derivatives
Options, Futures, and Other Derivatives
John C. Hull 10th Edition
Chapter 2, Problem 13 ↓

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A market-if-touched order is a type of order used in trading that becomes a market order once a specified price level is reached. It is designed to capture favorable price movements. When the market price touches the specified level, the MIT order is triggered  Show more…

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Explain the difference between a market-if-touched order and a stop order.
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