{"id":1476,"date":"2021-06-11T17:18:00","date_gmt":"2021-06-11T17:18:00","guid":{"rendered":"https:\/\/ibkrcampus.eu\/glossary-terms\/pegging\/"},"modified":"2021-06-11T17:18:00","modified_gmt":"2021-06-11T17:18:00","slug":"pegging","status":"publish","type":"glossary-terms","link":"https:\/\/www.interactivebrokers.eu\/campus\/glossary-terms\/pegging\/","title":{"rendered":"Pegging"},"content":{"rendered":"
    \n
  1. Fixing the exchange rate of one country’s currency to another as a means of stabilization. This is typically done to match the United States.<\/li>\n
  2. A practice where an investor buys a large quantity of underlying commodities or securities near the expiration date of a derivative held by an investor. This is typically done to encourage favorable market price movement. For example, an investor writing a put option would engage in pegging so that lowered prices would eliminate the requirement to purchase the underlying security or commodity from the option holder. The goal is make the option expire with no value so that the initial premium received by the writer is protected.<\/li>\n<\/ol>\n

    Also known as Capping<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

    Fixing the exchange rate of one country’s currency to another as a means of stabilization. This is typically done to match the United States. A practice where an investor buys a large quantity of underlying commodities or securities near the expiration date of a derivative held by an investor. This is typically done to encourage […]<\/p>\n","protected":false},"featured_media":0,"parent":0,"template":"","meta":{"_acf_changed":false,"footnotes":""},"traders-glossary":[163,157],"class_list":["post-1476","glossary-terms","type-glossary-terms","status-publish","traders-glossary-trading-terms-p","traders-glossary-trading-alphabet"],"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","acf":[],"yoast_head":"\nArchives Term | IBKR Glossary | IBKR Campus<\/title>\n<meta name=\"description\" content=\"Fixing the exchange rate of one country's currency to another as a means of stabilization. This is typically done to match the United States. A practice...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.interactivebrokers.com\/campus\/glossary-terms\/pegging\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Pegging\" \/>\n<meta property=\"og:description\" content=\"Fixing the exchange rate of one country's currency to another as a means of stabilization. This is typically done to match the United States. A practice where an investor buys a large quantity of underlying commodities or securities near the expiration date of a derivative held by an investor. This is typically done to encourage favorable market price movement. For example, an investor writing a put option would engage in pegging so that lowered prices would eliminate the requirement to purchase the underlying security or commodity from the option holder. The goal is make the option expire with no value so that the initial premium received by the writer is protected. Also known as Capping\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.interactivebrokers.com\/campus\/glossary-terms\/pegging\/\" \/>\n<meta property=\"og:site_name\" content=\"IBKR Campus EU\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\n\t \"@context\": \"https:\\\/\\\/schema.org\",\n\t \"@graph\": [\n\t {\n\t \"@type\": \"WebPage\",\n\t \"@id\": \"https:\\\/\\\/www.interactivebrokers.eu\\\/campus\\\/glossary-terms\\\/pegging\\\/\",\n\t \"url\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/glossary-terms\\\/pegging\\\/\",\n\t \"name\": \"Pegging\",\n\t \"isPartOf\": {\n\t \"@id\": \"https:\\\/\\\/ibkrcampus.eu\\\/campus\\\/#website\"\n\t },\n\t \"datePublished\": \"2021-06-11T17:18:00+00:00\",\n\t \"description\": \"Fixing the exchange rate of one country's currency to another as a means of stabilization. This is typically done to match the United States. A practice where an investor buys a large quantity of underlying commodities or securities near the expiration date of a derivative held by an investor. This is typically done to encourage favorable market price movement. For example, an investor writing a put option would engage in pegging so that lowered prices would eliminate the requirement to purchase the underlying security or commodity from the option holder. The goal is make the option expire with no value so that the initial premium received by the writer is protected. Also known as Capping\",\n\t \"breadcrumb\": {\n\t \"@id\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/glossary-terms\\\/pegging\\\/#breadcrumb\"\n\t },\n\t \"inLanguage\": \"en-US\",\n\t \"potentialAction\": [\n\t {\n\t \"@type\": \"ReadAction\",\n\t \"target\": [\n\t \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/glossary-terms\\\/pegging\\\/\"\n\t ]\n\t }\n\t ]\n\t },\n\t {\n\t \"@type\": \"BreadcrumbList\",\n\t \"@id\": \"https:\\\/\\\/www.interactivebrokers.com\\\/campus\\\/glossary-terms\\\/pegging\\\/#breadcrumb\",\n\t \"itemListElement\": [\n\t {\n\t \"@type\": \"ListItem\",\n\t \"position\": 1,\n\t \"name\": \"Home\",\n\t \"item\": \"https:\\\/\\\/www.interactivebrokers.eu\\\/campus\\\/\"\n\t },\n\t {\n\t \"@type\": \"ListItem\",\n\t \"position\": 2,\n\t \"name\": \"Glossary\",\n\t \"item\": \"https:\\\/\\\/www.interactivebrokers.eu\\\/campus\\\/glossary-terms\\\/\"\n\t },\n\t {\n\t \"@type\": \"ListItem\",\n\t \"position\": 3,\n\t \"name\": \"Pegging\"\n\t }\n\t ]\n\t },\n\t {\n\t \"@type\": \"WebSite\",\n\t \"@id\": \"https:\\\/\\\/ibkrcampus.eu\\\/campus\\\/#website\",\n\t \"url\": \"https:\\\/\\\/ibkrcampus.eu\\\/campus\\\/\",\n\t \"name\": \"IBKR Campus EU\",\n\t \"description\": \"\",\n\t \"potentialAction\": [\n\t {\n\t \"@type\": \"SearchAction\",\n\t \"target\": {\n\t \"@type\": \"EntryPoint\",\n\t \"urlTemplate\": \"https:\\\/\\\/ibkrcampus.eu\\\/campus\\\/?s={search_term_string}\"\n\t },\n\t \"query-input\": {\n\t \"@type\": \"PropertyValueSpecification\",\n\t \"valueRequired\": true,\n\t \"valueName\": \"search_term_string\"\n\t }\n\t }\n\t ],\n\t \"inLanguage\": \"en-US\"\n\t }\n\t ]\n\t}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Archives Term | IBKR Glossary | IBKR Campus","description":"Fixing the exchange rate of one country's currency to another as a means of stabilization. This is typically done to match the United States. A practice...","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.interactivebrokers.com\/campus\/glossary-terms\/pegging\/","og_locale":"en_US","og_type":"article","og_title":"Pegging","og_description":"Fixing the exchange rate of one country's currency to another as a means of stabilization. This is typically done to match the United States. A practice where an investor buys a large quantity of underlying commodities or securities near the expiration date of a derivative held by an investor. This is typically done to encourage favorable market price movement. For example, an investor writing a put option would engage in pegging so that lowered prices would eliminate the requirement to purchase the underlying security or commodity from the option holder. The goal is make the option expire with no value so that the initial premium received by the writer is protected. Also known as Capping","og_url":"https:\/\/www.interactivebrokers.com\/campus\/glossary-terms\/pegging\/","og_site_name":"IBKR Campus EU","twitter_card":"summary_large_image","twitter_misc":{"Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.interactivebrokers.eu\/campus\/glossary-terms\/pegging\/","url":"https:\/\/www.interactivebrokers.com\/campus\/glossary-terms\/pegging\/","name":"Pegging","isPartOf":{"@id":"https:\/\/ibkrcampus.eu\/campus\/#website"},"datePublished":"2021-06-11T17:18:00+00:00","description":"Fixing the exchange rate of one country's currency to another as a means of stabilization. This is typically done to match the United States. A practice where an investor buys a large quantity of underlying commodities or securities near the expiration date of a derivative held by an investor. This is typically done to encourage favorable market price movement. For example, an investor writing a put option would engage in pegging so that lowered prices would eliminate the requirement to purchase the underlying security or commodity from the option holder. The goal is make the option expire with no value so that the initial premium received by the writer is protected. Also known as Capping","breadcrumb":{"@id":"https:\/\/www.interactivebrokers.com\/campus\/glossary-terms\/pegging\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.interactivebrokers.com\/campus\/glossary-terms\/pegging\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.interactivebrokers.com\/campus\/glossary-terms\/pegging\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.interactivebrokers.eu\/campus\/"},{"@type":"ListItem","position":2,"name":"Glossary","item":"https:\/\/www.interactivebrokers.eu\/campus\/glossary-terms\/"},{"@type":"ListItem","position":3,"name":"Pegging"}]},{"@type":"WebSite","@id":"https:\/\/ibkrcampus.eu\/campus\/#website","url":"https:\/\/ibkrcampus.eu\/campus\/","name":"IBKR Campus EU","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/ibkrcampus.eu\/campus\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"}]}},"_links":{"self":[{"href":"https:\/\/ibkrcampus.eu\/campus\/wp-json\/wp\/v2\/glossary-terms\/1476","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ibkrcampus.eu\/campus\/wp-json\/wp\/v2\/glossary-terms"}],"about":[{"href":"https:\/\/ibkrcampus.eu\/campus\/wp-json\/wp\/v2\/types\/glossary-terms"}],"version-history":[{"count":0,"href":"https:\/\/ibkrcampus.eu\/campus\/wp-json\/wp\/v2\/glossary-terms\/1476\/revisions"}],"wp:attachment":[{"href":"https:\/\/ibkrcampus.eu\/campus\/wp-json\/wp\/v2\/media?parent=1476"}],"wp:term":[{"taxonomy":"traders-glossary","embeddable":true,"href":"https:\/\/ibkrcampus.eu\/campus\/wp-json\/wp\/v2\/traders-glossary?post=1476"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}