Have some qns on mit order 1) Does a buy mit order receive a fill on a price gap down? Place a mit order at 100 and open price gap 98. Does the buy mit order receive a fill at 98? 2) Is mit order allow to place above market price? Current price is 100 and place a buy mit order 103. Does the mit order receive a fill straight or wait to price trade to 103 to receive a fill?
MIT, market if touched, will get the best price available at that time with no protection from gap moves.
It behaves like a market order when the price touches your limit price. So you might get $98, or you might get better but typically a little worse because you're paying the bid-ask spread.
You have to watch out as not all exchanges honors MIT orders. http://www.danielstrading.com/trading-resources/order-entry-handbook/ What some don't know by using a MIT order, unless trading occurs at a price, you will still be in the trade, say you have "Sell at 100 MIT" and price is at 101, then news comes out and jumps over 100 and next trade is at 99.99, and does not go up, your order does not get activated and you still in trade. When I was a newb, I did MIT orders and got slammed hard couple times getting in with huge slippage and one time never got filled as price jumped over my price.
To my knowledge, most exchanges do not support this. Most of these types orders are server side and managed by the trading platform.
I remember I had used them 1-2 times calling down to S&P pit, Holy moly I got screwed, ROFLMAO, I had taken images of price hitting my number three times and I called them, took an hour to find I was still pending. They said it never hit there, next day said they said they would take half the loss, bull crap, I called CFTC and couple days later got the grand back and was out of the trade. Closed my account that day. Jack Carl Futures. Back then CFTC actually cared about retail.