BROWSE

Iceberg Order

What is an 'Iceberg Order'

An iceberg order is a large single order that has been divided into smaller lots, usually through the use of an automated program, for the purpose of hiding the actual order quantity.

Explaining 'Iceberg Order'

When large participants, such as institutional investors, need to buy and sell large amounts of securities for their portfolios, they can divide their large orders into smaller parts so that the public sees only a small portion of the order at a time - just as the 'tip of the iceberg' is the only visible portion of a huge mass of ice. By hiding its large size, the iceberg order reduces the price movements caused by substantial changes in a stock's supply and demand.


Further Reading


The navigation of an iceberg: The optimal use of hidden orders
www.sciencedirect.com [PDF]
… Finance Research Letters. Volume 4, Issue 2, June 2007, Pages 68-81. Finance Research Letters … Therefore, investors often split large orders into smaller tranches. Iceberg orders facilitate these trading practices by executing such business automatically in the order book …

The impact of iceberg orders in limit order booksThe impact of iceberg orders in limit order books
papers.ssrn.com [PDF]
… Finance Research Letters. Volume 4, Issue 2, June 2007, Pages 68-81. Finance Research Letters … Therefore, investors often split large orders into smaller tranches. Iceberg orders facilitate these trading practices by executing such business automatically in the order book …

Algorithmic trading patterns in Xetra ordersAlgorithmic trading patterns in Xetra orders
www.tandfonline.com [PDF]
… Finance Research Letters. Volume 4, Issue 2, June 2007, Pages 68-81. Finance Research Letters … Therefore, investors often split large orders into smaller tranches. Iceberg orders facilitate these trading practices by executing such business automatically in the order book …

Prediction of Hidden Liquidity in theLimit Order Book of GLOBEX FuturesPrediction of Hidden Liquidity in theLimit Order Book of GLOBEX Futures
jot.pm-research.com [PDF]
… Finance Research Letters. Volume 4, Issue 2, June 2007, Pages 68-81. Finance Research Letters … Therefore, investors often split large orders into smaller tranches. Iceberg orders facilitate these trading practices by executing such business automatically in the order book …

An open-source limit-order-book exchange for teaching and researchAn open-source limit-order-book exchange for teaching and research
ieeexplore.ieee.org [PDF]
… Finance Research Letters. Volume 4, Issue 2, June 2007, Pages 68-81. Finance Research Letters … Therefore, investors often split large orders into smaller tranches. Iceberg orders facilitate these trading practices by executing such business automatically in the order book …

The impact of iceberg orders in limit order booksThe impact of iceberg orders in limit order books
www.worldscientific.com [PDF]
… Finance Research Letters. Volume 4, Issue 2, June 2007, Pages 68-81. Finance Research Letters … Therefore, investors often split large orders into smaller tranches. Iceberg orders facilitate these trading practices by executing such business automatically in the order book …

The impact of imitation on long memory in an order-driven marketThe impact of imitation on long memory in an order-driven market
link.springer.com [PDF]
… Finance Research Letters. Volume 4, Issue 2, June 2007, Pages 68-81. Finance Research Letters … Therefore, investors often split large orders into smaller tranches. Iceberg orders facilitate these trading practices by executing such business automatically in the order book …

Volume discovery: Leveraging liquidity in the depth of an order driven marketVolume discovery: Leveraging liquidity in the depth of an order driven market
www.tandfonline.com [PDF]
… Finance Research Letters. Volume 4, Issue 2, June 2007, Pages 68-81. Finance Research Letters … Therefore, investors often split large orders into smaller tranches. Iceberg orders facilitate these trading practices by executing such business automatically in the order book …

Transport costs and new economic geographyTransport costs and new economic geography
academic.oup.com [PDF]
… Finance Research Letters. Volume 4, Issue 2, June 2007, Pages 68-81. Finance Research Letters … Therefore, investors often split large orders into smaller tranches. Iceberg orders facilitate these trading practices by executing such business automatically in the order book …



Q&A About Iceberg Order


How can you reduce price movements caused by substantial changes in supply and demand with an iceberg order?

By hiding its large size, it reduces price movements caused by substantial changes in supply and demand.

What is an iceberg order?

An iceberg order is a large single order that has been divided into smaller lots, usually through the use of an automated program.

Who uses iceberg orders?

Large participants such as institutional investors use them to buy and sell large amounts of securities for their portfolios.

What does the term "tip of the iceberg" mean in this context?

The tip of the iceberg refers to only a small portion being visible at one time. This represents how most people see only a small part of an iceberg at any given time.