Iceberg order

An Iceberg order is a large volume order that is split into smaller limit orders at the same price. Only a small portion of the total order is displayed on the market, while the bulk of the order remains hidden or "below the surface." This is done to prevent the market from reacting to the full size of the order and potentially causing a price spike or drop. For example, if an investor wants to buy 100,000 shares of stock, they can split the order into 10 smaller limit orders of 10,000 shares each. Only one of these orders is displayed on the market at a time, so the market does not see the full 100,000 shares being sought after. This helps to prevent other traders from front-running the order and driving up the stock price before the full order can be executed. Iceberg orders are often used by institutional investors who need to execute large trades without disrupting the market. They are also used by traders who want to keep their trading intentions private and avoid revealing their strategy to other traders.