If a volatile order is modified, what happens to the original order?

If a volatile order is modified, what happens to the original order?

• A. It remains unchanged
• B. It is converted to iceberg order
• C. It becomes a market order
• D. It is deleted

Answer: (D)

Modifying a volatile order isn’t an in-place edit. The system handles changes by canceling the existing instruction and submitting a new order with the updated terms. For volatile orders, this cancellation ensures there aren’t conflicting or outdated instructions in the book, so the original order is deleted and a fresh order takes its place with the new price or quantity. That’s why the original order ends up being removed rather than simply edited or transformed into another type. Other options would imply keeping the old instruction, changing the order type, or altering it without cancellation, which isn’t how modification is implemented.

Modifying a volatile order isn’t an in-place edit. The system handles changes by canceling the existing instruction and submitting a new order with the updated terms. For volatile orders, this cancellation ensures there aren’t conflicting or outdated instructions in the book, so the original order is deleted and a fresh order takes its place with the new price or quantity. That’s why the original order ends up being removed rather than simply edited or transformed into another type. Other options would imply keeping the old instruction, changing the order type, or altering it without cancellation, which isn’t how modification is implemented.