Iceberg Order

An iceberg order is a purchasing strategy employed by large institutional investment firms, which utilizes software to divide a significant asset purchase into multiple smaller limit orders. The primary objective of an iceberg order is to acquire a substantial amount of the asset in smaller increments, without causing a disruption in the asset’s price due to a large single order. Iceberg orders are typically executed in both visible and hidden increments, with the visible portion representing only a fraction of the total order size, hence the term “iceberg.”