medium · Market Microstructure lob
A trader places an IOC (Immediate-or-Cancel) order. How does FIFO priority apply to this order?
- It always outranks every resting GTC order in the book, regardless of price or arrival time.
- It sits in the queue at its arrival time until it is filled or the trader cancels it.
- It is filled pro-rata alongside other IOC orders that arrive in the same instant.
- It only interacts with the resting liquidity already in the LOB based on their priority.
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