Pegging


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Pegging

Making transactions in a security, currency, or commodity in order to stabilize or target its value through market intervention.

Pegging

1. The practice of fixing the exchange rate of a currency to the value of another currency. Most countries that peg their currencies do so to the U.S. dollar, though some peg to currency baskets. See also: Fixed exchange rate.

2. The act of buying a security in a large quantity to drive up the price. Writers of put options (and holders of short positions) practice pegging when the expiration date is approaching and it appears that the option will be exercised such that it puts the writer at a disadvantage. The idea behind pegging is to cause the price to rise so the option is not exercised and the writer can profit from the premium.
References in periodicals archive ?
Talking to APP, Malik Faizan of Al-Khyam Tent Pegging Club, explained that each team comprises four horses.
He appreciated the concerned department for organizing such mega tent pegging competition and said that CDA would continue to organize tent pegging competition with further improvement.
dollar still a dominant currency in Hong Kong's economic life, pegging the Hong Kong dollar to such a narrow currency basket would make little difference to pegging it against the U.S.
Tent Pegging is a popular equestrian sport in the country.