Pegged-to-Midpoint Orders

A pegged-to-midpoint order provides a means for traders to seek a price improvement at the midpoint of the National Best Bid and Offer (NBBO). The price automatically adjusts to peg the midpoint as the market moves in any direction.

• For U.S. stock orders you must select direct routing to submit a pegged-to-midpoint order.
• For U.S. equity and index options, you must direct route your order IBUSOPT to use the pegged-to-midpoint order type..

Most venues (including but not limited to NASDAQ/ISLAND) do not accept an offset from the midpoint.

For orders with no offset, you must specify the value "0" or "0.0" in TWS. Note that some exchanges may allow an offset amount in the future.

You can also define a price cap using the Limit Price field, to prevent your order from being executed above or below a specified price level.