Hide from the Market Using Market if Touched (MIT) Orders

The NinjaTrader platform offers a number of basic and advanced order types providing traders with user friendly and flexible methods to trade the global markets. Market if Touched orders, or MIT for short, allow traders to mask pending orders from the exchange and enter the market with precision.

What is a MIT Order?

This unique order type is similar in concept to a limit order, which is only executed when market price satisfies a user defined limit price.

A MIT order however will execute a market order once a defined price level is met and the order will be filled at the current best bid/ask price. The principle difference between a limit and MIT order is:

  • Limit orders will only fill at the user defined price or better
  • MIT orders will fill at any price after the market reaches the pre-defined level

MIT Order Example

Jane places a limit order of 10 contracts on the E-mini S&P at 2716. The ES reached the pre-defined limit price, however only 5 of her contracts were filled. A partial fill occurred because the ES was experiencing a period of high volatility & was only momentarily trading at the 2716 value before trending higher in price again. Because limit orders will only fill at the limit price or better, Jane was only able to secure 5 of her 10 contracts.

If Jane had used a MIT order, all 10 contracts would have been filled once the 2716 price was met. However, it’s possible that not all 10 contracts would be filled at the 2716 price level, rather the market order will fill at the current best bid/offer.

What Makes MIT Orders Unique?

MIT orders are characterized as “synthetic” orders meaning they are typically not supported by exchanges. Because MIT orders are not supported at the exchange, the orders are not recorded on the exchange order books until the trigger price is met and a normal market order is submitted.

In essence, MIT orders are “hidden” from the market and managed locally by your broker. With the burgeoning popularity of order flow tools providing bid/ask data to retail traders, masking the location of a profit target order can be a desirable trait.

How Does NinjaTrader Manage MIT Orders?

Due to the synthetic nature of MIT orders, it’s important to understand how they are managed by NinjaTrader. Once an MIT order is submitted, the order will be categorized in either the “Trigger Pending” or “Accepted” state.

  • Trigger Pending: When in a Trigger Pending state, the MIT order is locally held by NinjaTrader. At this stage, it is imperative that NinjaTrader remain connected to the data feed to allow the platform to monitor the price of the market. Once the user defined price level is achieved, NinjaTrader will submit the market order.
  • Accepted: If the MIT order is in the Accepted state, this indicates the order is working on the connection technology servers and NinjaTrader can be disconnected from the data feed without risk of deactivating the order.

MIT orders are supported on all NinjaTrader 8 order entry windows as through manual entry or as part of an Advanced Trade Management or NinjaScript-based strategy. Leverage the power of NinjaTrader’s advanced trading features and download for FREE today!