What is an Iceberg Order

Understanding Iceberg Orders

An iceberg order is an advanced order type that divides a large order in the order book into several smaller orders. This sophisticated trading mechanism is designed to minimize market impact while increasing trading efficiency. When one iceberg order is executed, the system automatically submits a new order until all iceberg orders have been completed. This approach allows traders to execute large positions without causing significant price movements that might result from revealing the full order size to the market.

It is important to note that iceberg orders can only be utilized for limit orders and stop limit orders on major cryptocurrency trading platforms.

How to Place an Iceberg Order on Web Platforms

Placing an iceberg order through a web trading interface involves a straightforward process. First, log in to your trading account and navigate to the Trading section, then select Spot Market. Choose your desired trading pair, such as BTC/USDT, and select either a Limit order or Stop Limit order type.

Next, check the checkbox next to the Iceberg option and enter the total amount of cryptocurrency you wish to purchase. Then, specify the amount of cryptocurrency for each individual iceberg order. It is crucial to remember that you can create a maximum of 10 iceberg orders. For example, if your total order amount is 10 BTC, each individual iceberg order cannot be less than 1 BTC (10 BTC ÷ 10 orders = 1 BTC per iceberg order).

After entering the limit or stop limit price, click the Buy button. If you have enabled the order confirmation function, you must click Continue in the confirmation popup window. Your order will be automatically executed once the market price reaches your specified limit or stop limit price.

To view your open iceberg orders, navigate to the Open Orders section. To view your completed iceberg orders, go to the Trading History tab, where they will be displayed as limit or stop limit orders.

How to Place an Iceberg Order on Mobile Applications

The process for placing an iceberg order through a mobile trading application is similar to the web interface. Log in to your trading app and navigate to the Trade section, then select Spot. Choose your trading pair, such as BTC/USDT, and select either a Limit order or Stop Limit order.

Check the checkbox next to the Iceberg option and enter the total amount of cryptocurrency you wish to purchase. Then, specify the amount for each individual iceberg order. Remember that you can create a maximum of 10 iceberg orders, with the same calculation rules applying: if your total order is 10 BTC, each individual iceberg order must be at least 1 BTC (10 BTC ÷ 10 orders = 1 BTC per iceberg order).

Enter your limit or stop limit price and tap the Buy button. If order confirmation is enabled, confirm the order in the popup window. Your order will be submitted to the order book and executed according to standard limit or stop limit trading rules.

Key Requirements and Limitations

Several important requirements and limitations govern the use of iceberg orders on trading platforms. The iceberg order amount must be smaller than the total order amount. For instance, if your total order is 1 BTC, the iceberg order amount must be less than 1 BTC. If the iceberg amount equals or exceeds the total order amount, you will not be able to submit the order.

You can submit a maximum of 10 iceberg orders for any single trading operation. The number of iceberg orders is calculated by dividing the total order amount by the iceberg order amount. For example, with a total of 10 BTC and individual iceberg orders of 3 BTC, you would have three orders of 3 BTC each, followed by one final order of 1 BTC.

The amount of the final iceberg order will correspond to the remainder from the calculation (total order amount ÷ iceberg order amount). All iceberg orders will be executed at the limit or stop limit price you specify. Additionally, iceberg orders are subject to standard spot trading rules, including minimum order size, trading fee rates, and other applicable regulations.

Conclusion

Iceberg orders represent a powerful tool for traders seeking to execute large positions while minimizing market impact. By automatically splitting large orders into smaller, manageable portions, iceberg orders enhance trading efficiency and allow for more discreet market participation. Understanding the mechanics, limitations, and proper execution of iceberg orders—whether through web interfaces or mobile applications—enables traders to implement sophisticated trading strategies more effectively. Whether you are a beginner or experienced trader, mastering iceberg orders can significantly improve your ability to execute large trades with greater control and efficiency.

FAQ

What exactly is an iceberg?

An iceberg is a crypto asset where most value remains hidden beneath the surface, with only a small portion visible. It represents assets with significant potential but limited public awareness. The term symbolizes untapped opportunities in emerging blockchain projects.

What does "iceberg" mean in slang?

In crypto slang, "iceberg" refers to a large hidden order placed on the market. It's split into smaller visible portions to avoid dramatically affecting the price. Only a fraction shows at a time while the rest remains hidden below the surface, like an actual iceberg.

What does it mean to be called an iceberg?

An iceberg refers to a crypto asset with hidden depth and potential. Like an iceberg where most of the mass lies beneath the surface, these projects have substantial underlying value, technology, or community support not immediately visible to casual observers. They represent undervalued opportunities with significant upside potential.