medium · Market Microstructure lob

A trader uses an iceberg with a peak of 1,000 and a total of 5,000. A market order for 500 shares hits the peak.

What is the status of the order's time priority now?

  1. The priority is reset because the resting order's total size changed.
  2. The 500 remaining shares move behind any new orders that arrived at the same price after T=0.
  3. The order is automatically hidden from the book until the next slice is replenished.
  4. It maintains its original time priority for the remaining 500 shares in the peak.

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