Gain timely investment insights on:
By subscribing, you agree to receive research insights and marketing communications from us. You may unsubscribe at any time. See our Privacy Policy for details.
The difference between these 2 orders is that a Stop order is typically used as a loss-limiting mechanism in respect of open positions, while an if-touched order is used to create new positions in anticipation of a particular reversing trend.
In a falling market, an investor may want to enter the market at a favourable price should the market rebound. Similarly, in a rising market, an investor may want to enter into a short position should the price begin to fall.
