Pegging an order with reference to the inside quotation on the opposite side of the market. An order placed with market pegging can ensure a trader that the price at which an order will be filled reflects the price level on the opposite side. For example, if the inside offer was $10.50, an order to buy (buy order) with market pegging would be priced at $10.50.

A market peg (market peg order) is one that follows the best bid, when selling a security, and the best offer, when buying a security.