Pegged-To-Primary Orders

Description

A Pegged-to-Primary Order allows you to enter a more aggressive price than the current market price, and have the entered price stay within a fixed interval to the market, should prices deteriorate. A Buy order is pegged to the bid (instead of the best offer) and a Sell order is pegged to the offer. You can enter an offset amount that is added to a buy order price and subtracted from a sell price.

For a buy order, the order is submitted at the best bid, with the offset amount (if used) added to the best bid. If the best bid moves before the order executes, your order price is modified to match to the new best bid with the offset amount added.

For a sell order, the order is submitted at the best offer, with the offset amount (if used) subtracted from the best offer. If the best offer moves before the order executes, your order price is modified to match to the new best offer, with the offset amount subtracted.

TWS Links

For information on how to create Pegged-to-Primary orders, please refer to the TWS User's Guide.

Example

This order type is less aggressive than the pegged-to-market order.

If the market is $50-50.10 and a customer enters a pegged-to-primary buy with an offset of $.05, the order would be submitted at the NBB + offset amount, or $50.05. If the NBB moves to $50.10, your order is resubmitted at $50.15 (NBB + offset of $.05). If the NBB drops to $50.05, the buy order is resubmitted at $50.10.