Glossary - ChicksX

Iceberg Order is a large trade split into smaller visible orders to hide the total order size.

Iceberg Order is a trading strategy used to execute large orders without revealing the full order size to the market. It involves breaking down a large order into smaller, visible portions, while the majority remains hidden. As each visible portion is filled, another is released until the entire order is completed. This prevents significant market impact and reduces the likelihood of unfavorable price movements. Iceberg orders are particularly useful in maintaining anonymity and achieving better execution prices in volatile or illiquid markets.