An order that provides potential for price improvement by executing at the mid-point of the best bid and best offer prices in a given market (e.g., NBBO). It is eligible to execute against specific types of orders: market orders, limit order, non-displayed orders, and other mid-point orders.
Traders can post immediate-or-cancel (IOC) orders or orders at the midpoint, pegging with the nation-wide best price to gain price priority over other orders at both sides (buy and sell) and having the ability to match with marketable order flow directed to a number of venues. This type of orders favors execution at better fill rates over passive protection.
Mid-points orders are particularly used by traders seeking better fill rates without bearing the cost of crossing the spread.
