medium · Market Microstructure
A Participation Rate (POV) algorithm is set to 10%. If the trader also uses an 'Iceberg' order to hide their child orders, what is a potential drawback for their execution speed?
- Iceberg orders are only allowed in dark pools
- Lower queue priority might reduce the fill rate
- Iceberg orders are not eligible for maker rebates
- The 10% POV rate is calculated only on displayed volume
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