Glossary Background

Iceberg Order

An Iceberg Order is a trading strategy used to break down large orders into smaller parts or 'legs' to avoid impacting the market price significantly. This technique is commonly used by institutional investors or traders making large buy or sell transactions. By splitting the order, only a small portion of the total order is visible to the market, with the rest remaining hidden, thus reducing the chance of triggering market reactions or altering investor behavior.