Clear DefinitionsIceberg Order
1 min read
Pronunciation
[ahy-sberg awr-der]
Analogy
Like showing only the tip of an iceberg above water, while the majority remains hidden below.
Definition
A large order split into visible and hidden portions: only a small “tip” is displayed on the order book, while the bulk remains concealed until the tip is filled.
Key Points Intro
Iceberg orders enable large traders to execute without revealing full size.
Key Points
Display quantity: Visible portion shown in book.
Hidden quantity: Remainder executed incrementally.
Automatic refresh: New tip appears after fill.
Market impact: Reduces signaling to other traders.
Example
A trader places an iceberg sell order for 10,000 USDC with 500 USDC visible; each 500 block filled reveals the next slice.
Technical Deep Dive
Exchange matching engine stores hidden quantity in a separate field. On partial fill of displayed slice, engine moves min(slice, remaining) into book and emits new order event.
Security Warning
Sophisticated algos can detect iceberg patterns via order book dynamics.
Caveat
Complex to manage across multiple venues; liquidity may still be insufficient.
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