Order Type
Iceberg Order — Definition & Example
A large order split into smaller visible chunks to hide total size from the market.
Iceberg orders display only a fraction of the total order size in the book; as visible chunks fill, the next chunk is automatically displayed. Used by institutions to avoid moving the market when executing large positions. Most retail traders won't use these directly but should know they exist — they explain why "thin" books sometimes absorb large fills without obvious size showing.
Example
Iceberg sell of 10,000 shares with display size of 500. Only 500 shares show in the book. As they fill, the next 500 are displayed, and so on, until the full 10,000 is sold without ever showing more than 500 at once.
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