Iceberg Order

Iceberg order is typically a larger order that is broken up into smaller orders to conceal the real size of order. When a large order enters the market it may affect the supply and demand in the market. To nullify such an effect, a small quantity is disclosed to the public against an undisclosed large order. When one’s disclosed portion is filled, the next portion is sent to the market. This process continues until the entire order is filled. This type of order is usually used by institutional investors when they need to buy or sell a large amount of a particular security.