Iceberg Order

What is an Iceberg Order?

An Iceberg Order is a large block of trading orders that is split into smaller, separate orders, while the majority of these orders remain hidden.

Definition of an Iceberg Order

An Iceberg Order is a type of order designed to execute large trades without revealing their full size to the market. Instead of placing a single large position that could impact prices, traders split it into smaller parts, keeping the rest hidden. As each portion is filled, the next portion is automatically placed until the order is fully executed. Traders and investors notice these orders by observing a series of small, repeated trades in a stock or cryptocurrency.

How does an Iceberg Order work?

When an investor places an Iceberg Order, the order is structured based on two key factors:

• Total volume: this is the total quantity the investor wishes to buy or sell of this asset.
• Visible size: this is the portion of the trade that will be visible, while the rest of the trade remains hidden.

Example of how an Iceberg Order works

If an investor named Khalid wants to buy 20,000 shares or tokens but wishes to display only 500 shares or tokens at a time, the order book on the screen will show only 500 shares or tokens. Once these shares are purchased, another 500 shares or tokens will appear at the same price (if the quantity is still available), this process continues until the entire transaction of 20,000 shares is executed.

Compliance disclaimer

Warning: investing in cryptocurrencies involves significant risks, and you may lose some or all of your capital. This content is for educational purposes only and is not an investment recommendation. Consult a licensed financial advisor before making any investment decisions.