What is an iceberg order in the context of cryptocurrency trading?

1 answers

• Jan 13, 2022 · 3 years ago
  An iceberg order is a popular trading technique in the cryptocurrency market. It involves splitting a large order into smaller, visible orders and a larger number of hidden orders. The visible orders are displayed on the order book, while the hidden orders are not visible to other traders. This strategy allows traders to avoid revealing the full size of their order and potentially affecting the market price. By executing smaller orders, traders can take advantage of liquidity and minimize slippage. The hidden orders are usually executed automatically when the visible orders are filled. Iceberg orders are commonly used by institutional investors and high-volume traders who want to execute large trades without causing significant price movements. It's a way to maintain anonymity and reduce market impact.
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