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Of the two types, price orders are clearly preferable. Market-If-Touched (MIT) Orders An MIT order to buy is always placed below the market, and an MIT order to sell is placed above the market. An MIT order becomes a market order when hit. Therefore, if you have an MIT order to buy at 4150 this order will become a market order as soon as a trade occurs at 4150. The pit broker holding this order will immediately buy at the market.

You could get filled at any price; however, you will usually be filled at or near your order, at times better than your price and at times worse. This is the chance you take when using such an order. An MIT order is used when you have a specific price level in mind for entry and you do not wish to take the chance of not being filled. Ordinarily such orders are used for selling at resistance above the market for buying at support below the market.

The day trader who is using the support and resistance methods described in this book may use MIT orders; however, do note that such The Importance of Orders 143 orders can cost you a few ticks. MITs are, however, excellent orders to use when trading support and resistance levels.

Remember that such orders are not accepted by all exchanges nor are they accepted at all times. Under certain market conditions MIT orders may be refused at the discretion either of the pit broker or of the exchange. Fill-or-Kill (FOK) Orders A fill-or-kill order is given at a specific price with the understanding that the pit broker will attempt to fill your order three times in succession at the requested price. Hence, if you have an FOK order to sell at 4550, the broker who gets your order will offer at 4550 three times.

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