Limit if Touched
A limit order that is executed when a specific trigger price is reached, wherein the trigger price is lower than the trading price at deployment.
The main disadvantage of an LIT order is that momentary volatility may accidentally trigger the live execution stage of the transaction before its user intended it to occur.
Experienced traders might notice the similarities between a limit if touched order and a stop-limit order, the primary differentiator is that the trigger price is lower than the current market price, as opposed to higher. These order types are considered different primarily due to programming limitations on legacy systems. Many older platforms are unable to support two or more triggers at different possible execution ranges without breaking the system - they were separated out of practicality, instead of for the benefit of the user.
Due to its underlying programmable swaps language, Axo allows you to build orders under whichever conditions you want, but will then assign them names based on conventional terminology. In other words, as Axo can easily execute such triggers, it makes the distinction between various order types primarily academic and kept for the benefit of the traders still used to the traditional terminology.
How it is usedAgata is a technical analyst and has come to the conclusion that if ADA were to go below -10%, then it is likely to continue going down until it hits support. She places a LIT order, which will begin purchasing at -15%, where she has identified where the support might be. This order type allows her to buy ADA only once a specific action has been taken by the market, rather than having a blanket order that triggers as soon as it can be fulfilled.
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