What is Iceberg Order?
Let's find out Iceberg Order meaning, definition in crypto, what is Iceberg Order, and all other detailed facts.
Iceberg orders, also known as reserve orders, are huge single orders that have been broken into smaller limit orders. Usually, they are divided using an automated computer. The purpose of this process is to disguise the total order quantity. Since there is an increased number of limit orders waiting to be placed, the phrase "iceberg" refers to the notion that the visible lots are only the "tip of the iceberg."
Iceberg orders are mostly utilized by institutional investors. They use them to buy and sell enormous amounts of securities for their portfolios without signaling it to the market. Due to using Iceberg orders, just a small fraction of their full orders is shown on order books. An iceberg order disguises big order volumes. Doing that it decreases price swings caused by significant changes in a stock's supply and demand.