An “iceberg order” is a type of advanced trading strategy used primarily in equity and futures markets. It involves splitting a large order into smaller, publicly visible orders to hide the actual order size.
The term “iceberg” comes from the idea that the visible portion of the order is just the “tip” of a much larger, hidden order, similar to how most of an iceberg’s mass is submerged and not visible above the water.
Iceberg orders are used to hide the activity of larger traders in the market.
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