Pegged to Midpoint
Pegged to Midpoint orders seek to execute at the midpoint of the National Best Bid and Offer (NBBO). The order price adjusts automatically in either direction to peg the midpoint if the market moves.
The limit price acts as a price cap to prevent your order from being executed above or below a specified level.
Most destinations do not accept an offset. You must set the offset amount to 0 (or 0.00).
To create a pegged to midpoint order
- Click in the Ask Price field to initiate a BUY order, or the Bid Price field to initiate a SELL order.
- In the Dest field select a destination that supports Pegged to Midpoint orders, like IBKRATS.
- Click in the Type field and select PEG MID as the order type.