The MidPrice order type is designed to split the difference between the bid and ask prices, and fill at the current midpoint of the NBBO or better. Set an optional price cap to define the highest price (for a buy order) or the lowest price (for a sell order) you are willing to accept.
To achieve the midpoint price or better, the MidPrice order is routed to the exchange with the highest probability of filling as a Pegged-to-Midpoint order or in the case of IEX as a Discretionary Peg (D-Peg) order. If no such exchange is available, the MidPrice order is routed as either a native or simulated Relative order.
To place a MidPrice order from the Mosaic Order Entry:
- Enter or select a symbol and then click Buy or Sell
- Set the order size and select MIDPRICE as the order type
- Complete the order parameters including the optional Price Cap price as desired
- Hit SUBMIT.
To find out more, see the TWS Users' Guide.