Types of Nasdaq Orders
We have already described many of the kinds of market and limit orders that are used on all the exchanges. Some orders that are unique to the Nasdaq system are:
• Auto-Ex order—order that can be executed only by Market Center participants on the automatic execution functionality of the Nasdaq Book. It would not be eligible for transfer to an ECN or other exchange that charges an access fee to its system. Auto-Ex orders are immediate or cancel orders.
• Pegged order—a limit order in which the price is automatically adjusted to changes in the inside bid or offer.
» A Primary Peg is a Pegged order set to the same side of the market.
◊ A Primary Peg buy order will follow the highest bid and a Primary Peg sell order will follow the lowest offer.
» A Market Peg is a Pegged order set to the opposite side of the market at a price set at $0.01 or mo