Pegged orders are a type of trading order that allows investors to execute trades at a fixed price relative to the current market price. Here are some key points about pegged orders:

- _Fixed price relative to market price_: Pegged orders are executed at a price that is a fixed amount above or below the current market price.

- _Example_: A trader places a pegged order to buy a stock at $50, which is $2 above the current market price of $48.

- _Types of pegged orders_:

- _Fixed peg_: The price is fixed at a specific amount above or below the market price.

- _Trailing peg_: The price adjusts automatically to maintain a fixed distance from the market price.

- _Benefits_:

- _Price control_: Investors can control the price at which they buy or sell.

- _Risk management_: Pegged orders can help limit potential losses or lock in profits.

- _Common uses_:

- _Stop-loss orders_: Pegged orders can be used to limit potential losses by selling a security if it falls below a certain price.

- _Limit orders_: Pegged orders can be used to buy or sell a security at a specific price or better.

- _Important notes_:

- _Not guaranteed_: Pegged orders are not guaranteed to execute at the desired price, especially in volatile markets.

- _Slippage risk_: Execution prices may vary from the desired price due to market conditions.