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Iceberg Order

A large order split so only a small portion is visible on the order book at a time.

An iceberg order is a large order split so only a small visible portion appears on the public order book at any time, with additional portions automatically revealed as earlier ones fill — intended to reduce the market impact and visibility of a large trading intention.

The name references how only a small fraction of the total order is visible, similar to how only a small fraction of an iceberg is visible above water.

Examples

  • An iceberg order might show only 5% of its total size on the order book at any given moment.
  • Iceberg orders are used to reduce the visible market impact of a large trading intention.

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Concept

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