Clear DefinitionsHidden Order
1 min read
Pronunciation
[hid-n awr-der]
Analogy
Like placing an order at a restaurant privately so other patrons don’t know what you ordered or how many dishes you requested.
Definition
A type of order in trading systems where size and/or price parameters are concealed from the public order book to prevent market impact or detection by other traders.
Key Points Intro
Hidden orders protect large trades from front‑running and information leakage.
Key Points
Non‑displayed size: Other traders see only partial or no size.
Execution: Matched against incoming orders until filled or expired.
Brokered: Often handled by exchange internalizers or dark pools.
Fees: May incur higher fees for concealed liquidity.
Example
An institutional trader places a hidden sell order for 10,000 ETH at market price, executed against incoming buy orders without revealing full size.
Technical Deep Dive
Security Warning
Hidden orders can still be detected via timing analysis; use randomized slicing and dark pool venues.
Caveat
Concealment reduces price discovery; balance between anonymity and execution quality.
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