Buy Orders				Sell Orders
Id	Time	Size	Price	Price	Size
B1	12:20:00	50	41.5	40.5	400
B2	12:21:25	100	42.0	39.0	300
B3	12:25:10	150	42.0	38.5	1,100
H1	12:21:25	1,000	42.0
B4	12:19:05	300	44.0

Assume the current state of the limit order book is as stated above. The market model is based on the model of a continuous double auction limit order market. There is hidden liquidity in the order book and orders are executed based on price-visibility-time priority in the order book. B2 is the visible part of an Iceberg order H1 that has another 1000 hidden volume.

Explain the mechanism of an Iceberg Order. What are the advantages of using an Iceberg Order compared to other types of orders?

The following orders are submitted in chronological order:

1. Sell 150 shares at 12:51:00
2. Sell 200 shares at 12:53:09

Fill out the order book after the submission of each order.

Order1: Sell 150 shares

Buy Orders				Sell Orders
Id	Time	Size	Price	Price	Size

Order 2: Sell 200 shares

Buy Orders				Sell Orders
Id	Time	Size	Price	Price	Size

(Total 4marks)