MRPNL

Iceberg Order

A large order split so only a small visible portion shows in the order book; the rest is hidden and refreshes automatically as each slice fills.

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An iceberg order (also called a reserve order) lets an institutional trader work a large position without telegraphing the full size to the market. Only a small peak quantity is visible; the remaining hidden quantity automatically replenishes the visible slice as it fills.

When sophisticated traders notice repeated lots of the same size refreshing at the same price in the order book, they recognize an iceberg and may trade aggressively against it — so icebergs are not invisible, just less conspicuous than a single large order.

Iceberg mechanics vary by exchange: some randomize the visible quantity slightly to make detection harder.

#order-type#microstructure#institutional

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