Limit if Touched

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Limit if Touched

An order to a broker to buy or sell a security at a certain stated price once a different stated price is reached. For example, suppose the second price is $50. A limit if touched order remains inactive until that security begins trading at $50, at which point the broker may fill the order at the investor's preferred price. A limit if touched order is identical to a stop limit order, except for the fact that a limit if touched sell order is made when the security is trading below the stop price, while a stop loss sell order is made when the security is trading above the stop price.