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Snap to Market Orders

Lesson 13 of 21
Duration 2:48
Level Beginner
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A Snap to Market order is available for U.S Stocks, Options, and Futures on the Pro platform. Accessible through both Mosaic and Classic TWS.

Study Notes:

In this video we will walk through how to enter a Snap to Market order.  The Snap to Market order type works with US stocks, options, and futures. The original order price is determined by the current bid or ask adjusted by an offset. A sell order price is calculated by adding the offset to the bid price and a buy order price is calculated by subtracting the offset from the ask price. While this is similar to a pegged order type it doesn’t continue to peg as the price moves.

The Snap to Market order type can be useful on stocks where the bid/ask spread is wide. Instead of just entering a market order you can submit the Snap to Market and potentially get a better fill somewhere in between the spread using the offset amount to determine how aggressive you want the order to be without hitting a bid or ask. Adjusting the offset amount determines how aggressive you want the order to be.

We will now enter a Snap to Market order in the Mosaic Order Entry Panel.

  • We will use symbol TSLA since the bid/ask spread is typically wide.
  • Rather than aiming to execute at the bid price for a market sell order, the Snap to Market is designed to execute by the offset amount you enter above the bid price.
  • For a buy order the offset amount would be subtracted from the ask price at the time the order is placed.
  • Enter the symbol in the order entry panel and choose Buy and the quantity.
  • In the order type drop down box scroll down and select “SNAP MKT”.
  • Next to the order type drop down box is the offset amount.
  • Choose the amount you want to use for the offset. We’ll use .05 and click “Submit”.
  • The order confirmation screen will appear.
  • Notice that the Order type will show “SNAP MKT” and the offset amount will be underneath it.
  • When ready to send the order click, “Transmit”.

The order will appear in the Activity Window, and you will see “SNAP MKT” in the Type data Column. The offset amount will appear in the Offset Amt column. If you do not see the offset amount, click on the gear in the upper right-hand corner and select “Aux. Price” in the Available Columns and add to the shown columns and click apply.

The Snap to Market order type allows the investor to send an order to trade between the spread.

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4 thoughts on “Snap to Market Orders”

  • Danial

    Nice

    • Interactive Brokers

      We are glad you liked the lesson, Danial. Be sure to check out all our offerings!

  • Mar

    Would be good to add a section to clarify the difference between these and pegged order types from a few chapters back. Thank you!

    • Interactive Brokers

      Thanks for the feedback, Mar.

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Disclosure: Interactive Brokers

The analysis in this material is provided for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad-based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation by IBKR to buy, sell or hold such investments. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Interactive Brokers, its affiliates, or its employees.

Disclosure: Order Types / TWS

The order types available through Interactive Brokers LLC's Trader Workstation are designed to help you limit your loss and/or lock in a profit. Market conditions and other factors may affect execution. In general, orders guarantee a fill or guarantee a price, but not both. In extreme market conditions, an order may either be executed at a different price than anticipated or may not be filled in the marketplace.

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