Patent ID: 8108295

Claim:
A computer-implemented method of trading a security with a peg order, comprising the steps of: receiving by a computer a client request to trade a specified number of shares of a specified security; receiving by the computer, data for a current market quote for said specified security; forming by the computer, a first electronic trade order to buy or sell said security, said first electronic trade order including a peg order price being correlated to said current market quote for said security; sending said first electronic trade order to a electronic trading forum where shares of said security are matched and traded electronically; periodically determining whether said current market quote has changed; if said current market quote has changed, determining if said peg order price needs adjusting; upon determination of a need for adjustment, calculating, by the computer, a new peg order price according to predetermined trading criteria for said security, wherein said predetermined trading criteria comprises a consideration of the direction of a previous peg order price correction; and sending a second electronic trade order having said new peg order price to said trading medium to replace said first electronic trade order.