What happens to iceberg orders at the end of an auction?

What happens to iceberg orders at the end of an auction?

• A. Canceled
• B. Transferred to continuous trading, or a new peak is entered as displayed quantity
• C. Disappeared
• D. Become market orders

Answer: (B)

Iceberg orders hide most of their size by only showing a small displayed quantity. At the end of the auction, any unfilled portion isn’t canceled or turned into a market order. Instead, the remaining quantity moves into continuous trading as a resting iceberg order, and the displayed size is updated to reflect the next tranche (a new peak) that becomes visible. This lets the order continue to participate in the market without revealing its full size. If nothing remains, it disappears. That’s why the correct description is that the iceberg order is transferred to continuous trading, with a new displayed quantity if applicable.

Iceberg orders hide most of their size by only showing a small displayed quantity. At the end of the auction, any unfilled portion isn’t canceled or turned into a market order. Instead, the remaining quantity moves into continuous trading as a resting iceberg order, and the displayed size is updated to reflect the next tranche (a new peak) that becomes visible. This lets the order continue to participate in the market without revealing its full size. If nothing remains, it disappears. That’s why the correct description is that the iceberg order is transferred to continuous trading, with a new displayed quantity if applicable.