A Limit if Touched (LIT) is an order to buy (or sell) an instrument at a specified price or better, below (or above) the market. This order is held in the system until the stop price is touched. An LIT order is similar to a stop-limit order, except that an LIT sell order is placed above the current market price, and a stop limit sell order is placed below.
The order follows the "buy low and sell high" rule: the buy trigger price needs to be lower than the current market price, and the sell trigger price needs to be higher than the current market price.
A sell LIT order must be entered above the current market price to gain the profit of a long position.
A buy LIT order must be entered below the current market price to gain the profit of a short position.
● Buy LIT order
Assuming you short sell stock XYZ at 30, you submit a buy LIT order with a trigger price of 15 and an order price of 16 when the market price is 40. If XYZ's market price falls to 15 or lower, a buy limit order will be submitted automatically to the clearing broker and filled at 16 or lower.
● Sell LIT order
Assuming stock XYZ has a current price of 10, you submit a sell LIT order with a trigger price of 15 and an order price of 14. If XYZ's market price rises to 15, a sell limit order will be submitted automatically to the clearing broker and filled at 14 or higher.
Clients can place orders at any time via the app.
Clients can set the order's Time-in-force. If the order is not filled in full, the unfilled portion will be cancelled automatically by the system. If the order fails to be executed due to risk management or other reasons, the order status will update to "failed," and the system will not continue to place the order.
If the order reaches the trigger condition during the preset trading period, the system will automatically submit the order to the clearing broker. The LIT order will not be triggered if the trigger condition is met outside the preset trading period.
5.1 Placement of the conditional order does not directly freeze the customer's buying power or position. It will be frozen only when the condition of the order is triggered. Please note that triggering of conditional order does not guarantee that the order will be successfully submitted to the upstream broker or the exchange. The conditional order will be failed to submit due to insufficient buying power or positions of the account at that time.
5.2 After the LIT order is triggered, the system will place a limit order automatically when the trigger price is touched. However, there is no guarantee that the order will be filled. If the order is not filled during the Time-in-force, it will be cancelled automatically by the system.
5.3 After the LIT order is triggered, whether it is filled or not, the trigger conditions will not be effective again. Please place a new order if necessary.
5.4 After the LIT order is triggered, the system will place a limit order. For clients' convenience, the order details will be displayed in the original LIT order.
5.5 After the LIT order is triggered, the system will submit the order only when the client has enough maximum buying power on the account, and financing may be applied.
5.6 Orders cannot be executed in multiple directions at the same time. If the order quantity is greater than the current position, the order will not be executed. For example, a buy and a buyback cannot be executed simultaneously; the same applies to a sell and a short sale.
5.7 The LIT order will only be triggered during the preset trading period.
5.8 If short selling of the underlying asset is supported, clients can short sell the underlying. If the account does not hold any long position when the order is triggered, short selling of the underlying asset will be executed.
5.9 Advanced orders are simulated by FUTU based on the basic orders and are irrelevant to Exchanges' advanced orders. Please refer to the actual order page for more details.
Disclaimer
Advanced orders are an order type developed by FUTU for clients' convenience. Meanwhile, FUTU tries to guarantee the execution of such orders. However, please be aware that the execution might be interrupted by poor network connections, server errors, etc. FUTU shall not be responsible or liable for any loss incurred.