A Snap-to-Market order calculates its execution price based on the current bid/ask spread and a user-defined offset amount. Unlike pegged orders, Snap-to-Market orders don’t continuously adjust as prices fluctuate.
On this lesson you will explore more about the Snap-to-Market order type, considering them particularly for securities with wide bid/ask spreads. In the process you will see how this strategy allows you to potentially fill your order somewhere within the spread, using the offset amount to control execution aggressiveness without necessarily hitting the exact bid or ask price.
Remember that by incorporating Snap-to-Market orders into your trading strategy within TWS Mosaic, you can potentially improve your execution efficiency, especially when dealing with wide bid/ask spreads which is a frequently common practice that happens while doing transactions on the market.