hard · Order Flow Analysis

A trader identifies an 'Iceberg' order on the bid side at 375.00 in Corn.

If 800 contracts trade at the bid over 10 minutes while the resting size only ever shows 50, what is the appropriate trade management logic?

  1. Place a buy limit at 374.75 to get a better fill than the institution.
  2. Wait for the iceberg to clear, then enter long on the first buying imbalance.
  3. Short at 374.75, anticipating that such heavy selling will eventually break the level.
  4. Long at 375.25 with a stop at 374.75, using the iceberg as a structural floor.

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