Iceberg Order
Volume Price Analysis glossary · Volume Price Analysis
Definition
A large limit order that displays only a small portion at a time, refreshing as the displayed portion fills; used by institutions to disguise size.
Iceberg Order in plain English
When someone wants to buy or sell a huge amount, showing the full size would scare the market and move the price against them (everyone reacts to a giant order). An Iceberg Order solves this by revealing only a tiny sliver at a time; as each visible slice gets filled, another slice automatically appears, over and over, until the whole hidden amount is done. The name says it all: like a real iceberg, only a small tip shows above the surface while the vast bulk stays hidden underneath. Big institutions use this trick to quietly buy or sell without tipping off the crowd about how much they're really moving.
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