Pegged orders are limit orders whose price tracks a reference (best bid, best ask, or last) with a configurable offset. They're useful for execution-quality strategies that want to stay near top of book without crossing the spread.
Support matrix
| Venue | Pegged native | Emulated |
|---|---|---|
| BitMEX | Native | n/a |
| Binance Futures | No | Yes |
| ByBit | No | Yes |
| Hyperliquid | No | Limit only |
| LNMarkets | No | Limit only |
Emulation
LucraX has a pegged_order_manager that watches the order book and
re-prices the open limit order as the reference moves. Emulation is
not free - it's HTTP order amendments, which have rate limits and
latency vs the native version.
When to use
- High-conviction limit entries where you want to capture improvement over the current best price.
- Exit-with-the-market designs that don't want to cross.
Not suitable for time-sensitive entries that need a guaranteed fill.
Pitfalls
- Spread risk: a pegged buy ladders down as the bid drops, which is exactly when you might not want to be buying.
- Cancellation race: when conditions change you may need to cancel before the peg adjusts, which is a race against the exchange feed.