The Snap to Market (SNAP MKT) order is similar to a pegged order, as the original order price is determined by the current bid/ask plus or minus an offset. But unlike the pegged order price, the "snap to" order price doesn't continue to peg as the price moves.
The trader creates the order by selecting SNAP MKT as the order type, then enters an offset amount which computes the active limit price as follows:
- Sell order price = Bid price + offset amount
- Buy order price = Ask price - offset amount
The Snap to Market order is simulated on all exchanges.
Additional Information
- Snap to Market orders in the TWS User's Guide.
- Snap to Market Orders Study Notes
- Snap to Market Orders on the Website's Order Type Page