Pegged-to-Best gives your IBKR ATS an advantage by pegging the price one tick higher than the best bid (for a SELL) and one tick lower than the best ask (for a BUY) to help ensure a faster fill against incoming orders.
To submit a Pegged-to-Best order to IBKR ATS
Select the US stock you want to trade and click the BUY or SELL button.
Expand the advanced panel, and from the list of destinations select IBKRATS.
In the order types field, use the drop-down to select PEG BEST.
If desired, define a limit price. Note that the price can't go higher than the midpoint regardless of your limit price.
In the Advanced panel modify the Minimum Competing Size if desired. This is the minimum order size required for your Pegged-to-Best order to compete against other orders in the IBKR ATS and is set to 100 as the default.
In the Advanced panel, modify the Compete against the best offer Offset. This is the offset that will be applied to the order to compete against other Pegged-to-Best orders in the ATS. It is set to 0.02 by default.
Submit the order.
Click the Bid (SELL) or Ask (BUY) price to create the order line.
In the Destination field select IBKRATS.
In the Type field select PEG BEST.
Double-click the Status field to open the Order Ticket (or right-click from the Order Line to Modify Order).
Find out more in the IBKR ATS Pegged-to-Best order types page.
To view a short video and additional information on this topic, please click here.