The Pegged to Midpoint order provides a means for investors to seek a price improvement at the midpoint of the National Best Bid and Offer, or NBBO. The price automatically adjusts to peg to the midpoint as the market moves in any direction. Currently most venues do not accept an offset from the midpoint, so the Offset Amount box is set to 0.0. In the future exchanges may allow an offset.<\/p>\n\n\n\n
The order panel in IBKR Desktop can be populated by either clicking on a symbol in the Portfolio or Watchlist screens or typing in a symbol in the search bar. Once the symbol is selected the investor can click \u201cBuy\u201d or \u201cSell\u201d to create an order window. In this example the investor chooses to create a \u201cBuy\u201d order and can select the quantity, please note that the Pegged to Midpoint Order type is not available for fractional shares. Directly below are three order types; Limit, Market, and Stop. To access the Pegged to Midpoint order type the investor clicks on \u201cStop\u201d and scrolls in the drop-down box to \u201cPegged to Midpoint\u201d.<\/p>\n\n\n\n
The investor then selects a limit price that the order won\u2019t be filled above for a buy order or below for a sell order.<\/p>\n\n\n\n
Next the investor selects the Time-in-force by clicking on the box. They can select Day or Good \u2018Till Cancelled, known as GTC. For more information on these terms please see the IBKR Traders\u2019 Glossary..<\/p>\n\n\n\n
When the investor is satisfied with the order inputs they can either click on \u201cPreview\u201d to see a breakdown of the order as well as its effect on margin, \u201cSave\u201d to save the order to be transmitted later, or \u201cSubmit Buy Order\u201d to send the order. The investor chooses \u201cSubmit Buy Order\u201d and the Order Confirmation window appears. Once satisfied they click \u201cTransmit\u201d to send the order. Once sent if not filled, the investor can view trades, modify the order, cancel order from the Order Confirmation screen. If the investor clicks on the three dots next to Cancel order they can Pause execution, Duplicate the order, or create the opposite order ticket.<\/p>\n\n\n\n
The Pegged to Midpoint order type allows the investor to send an order to trade at the midpoint between the spread that will adjust as the spot price moves.<\/p>\n\n\n\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
In this lesson, we\u2019ll define the objective of the Pegged to Midpoint order type and show the investor how to create a Pegged to Midpoint order in IBKR Desktop.<\/p>\n","protected":false},"author":1134,"featured_media":223955,"parent":0,"comment_status":"open","ping_status":"closed","template":"","meta":{"_acf_changed":true,"footnotes":""},"contributors-categories":[13576],"traders-academy":[13125,13128,13132],"class_list":{"0":"post-223787","1":"trading-lessons","2":"type-trading-lessons","3":"status-publish","4":"has-post-thumbnail","6":"contributors-categories-interactive-brokers","7":"traders-academy-beginner-trading","8":"traders-academy-level","9":"traders-academy-trading-lesson"},"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","acf":[],"yoast_head":"\n