Pegged to Benchmark

Similar to a Pegged to Stock order, a Pegged to Benchmark order specifies that the order price will adjust automatically relative to changes in the price of a user-specified reference asset. To determine whether the reference asset price has changed, the system monitors changes to the Last price for indexes, and changes to the Bid (for buy orders) and to the Ask (for sell orders).

To create a Pegged to Benchmark order

From the Quote Monitor, click the Bid for SELL order, click the Ask for a BUY order.

From the Type field in an order line select PEG BENCH.

Within the inline algo parameters you can define the following fields:

  • With a starting price of: Enter the price for the current order. By default the starting price for a Buy order = bid (at the time the order is created), for a Sell order = ask (at the time the order is created).
  • Decrease price by/Increase price by: Specify an offset by which the price will increase/decrease in response to the same-direction movement in the price of the reference contract.
  • For every price decrease (or increase) of: Enter the reference contract price-change increment that will drive the increase/decrease of the order price.
  • in reference contract: Enter the underlying symbol for the reference contract.
  • Starting reference price is: You must enter a starting price for the reference contract. The reference price is the current bid (for a buy order) and the current ask (for a sell order).
  • Order will be active only while reference price is between: If desired, set a defining "valid" price range for the reference contract. If the price moves outside the defined range, the order will be canceled.

Click Transmit to send the order.

For an example of how to use a Pegged-to-Benchmark order, see the Order Types information page.