A Limit if Touched (LIT) is an order to buy (or sell) at a specified price or better, below (or above) the market. This order is held in the system until the trigger price is touched. A LIT order is similar to a stop limit order, except that a LIT sell order is placed above the current market price, and a stop limit sell order is placed below.
Using a Limit if Touched order helps to ensure that, if the order does execute, the order will not execute at a price less favorable than the limit price.
Assume the current market price of a stock is 30:
● If you submit a sell LIT order at 33 and limit price at 32, and later the market price rises to 33, the sell limit order will be triggered and filled at a price no less than 32.
● If you submit a buy LIT order at 26 and limit price at 27, and later the market price drops to 26, the buy limit order will be triggered and filled at a price no more than 27.
Futu simulates advanced order types on its books and routes the order to its clearing broker when it reaches the trigger price. Futu simulates limit if touched orders with the following default triggers:
● Sell Simulated Limit if Touched Orders become limit orders when the last traded price is greater than or equal to the trigger price.
● Buy Simulated Limit if Touched Orders become limit orders when the last traded price is less than or equal to the trigger price.
Unless you select specific trading hours, advanced orders will only be triggered during regular trading hours or continuous trading session.