market-if-touched order

market-if-touched order definition - finance
A trade order that becomes a market order when a certain price is reached. A sell market-if-touched order is placed above current prices. A buy market-if-touched order is placed below current prices. These trade orders are placed to protect investors from rapidly falling prices or to trigger action when a certain price is believed to signal a rapid, significant move above or below that price. See also market order.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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