The Snap to Midpoint (SNAP MID) 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 "Snap to MidPoint" order by selecting "SNAP MID" in the order type field, then enters an offset amount which computes the active limit price as follows:
- Sell order price = Midpoint of the Bid/Ask price + offset amount
- Buy order price = Midpoint of the Bid/Ask price - offset amount
The Snap to Midpoint order is simulated on all exchanges.
Additional Information
- Snap to Midpoint orders in the TWS User's Guide.
- Snap to Midpoint Orders Study Notes
- Snap to Midpoint Orders on the Website's Order Type Page