hard · Order Flow Analysis order-book-dom

In Gold (GC), a trader identifies a suspected iceberg bid at $2,340.00 showing 25 lots. Price has held for 8 minutes with 260 lots traded at the bid. The trader then notices two separate 100-lot market sell orders slam the bid in quick succession; both are fully absorbed at $2,340.00 with no price movement, and the displayed size snaps back to 25 within a fraction of a second each time, faster than the normal refresh after smaller trades.

What does the unusually fast reconstitution after the two 100-lot sell orders most likely reveal about the hidden order?

  1. The reserve is large enough that 100-lot clips are trivial, so refill queuing is not yet a real constraint.
  2. The fast refresh proves the order is not an iceberg but a pool of many small independent limit orders stacked at the same tick.
  3. The seller has become more aggressive, forcing the buyer to refill faster to avoid losing the level.
  4. The exchange prioritizes iceberg reloads over new limit orders, which is why the refresh appears instant regardless of size.

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