Iceberg Order
| An iceberg order is a type of buy or sell order that is divided into smaller orders to hide the total quantity of the order. This type of order is typically used by large institutional investors or traders who do not want their large order to move the market. Iceberg orders are typically placed with a limit order or a stop order. A limit order is an order to buy or sell a security at a specified price or better. A stop order is an order to buy or sell a security once the price of the security reaches a specified price. Iceberg orders are typically used in two situations. The first is when an investor or trader wants to buy or sell a large quantity of a security, but does not want to move the market. The second is when an investor or trader wants to buy or sell a large quantity of a security, but wants to limit their exposure to the market. There are a few drawbacks to using iceberg orders. The first is that they can take longer to fill than a traditional order. The second is that they can be more expensive to fill, as the broker may charge a higher commission for an iceberg order. |
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