Algorithm which acts passively allowing the client to track the market best bid or offer automatically. Also include reference to ‘Peg to Bid’, ‘Peg to Offer’ and ‘Peg to Mid Price’. There are also ‘Peg to VWAP’ strategies available from some vendors. The orders of a specific discrete size are placed passively in the market. The order is replaced when it is filled until the order is completed. The price moves with the quote to stay at the most competitive level. Timeliness of order replenishment is important in determining how successful the strategy is in terms of executing in the shortest time possible. Smart peg algorithms will adjust size of orders displayed depending on movements in the reference price of the security.