Iceberg Order

An iceberg order is a software-based automated purchasing strategy used by large institutional investment firms to divide a large purchase of an asset into several smaller limit orders. The goal of an iceberg order is to purchase a large amount of an asset in smaller increments without disrupting the asset’s price with a single large order. Typically, iceberg orders are purchased in both visible and hidden increments. The term “iceberg” refers to the fact that visible purchases are only “the tip of the iceberg.”