Iceberg Order
A large order that reveals only a small portion to the order book at a time, refreshing as each slice is filled.
How it is identified
Test: total quantity exceeds the disclosed quantity, and a fresh slice enters the book only after the previous one is fully executed
Unit
qualitative
In depth
An iceberg hides size so that the market does not move away from a large participant before the order is complete. The cost is time priority: each refreshed slice joins the back of the queue at that price, so an iceberg fills more slowly than a fully displayed order of the same size. This is the mechanism behind a price level that appears to hold repeatedly despite heavy trading — the visible quantity keeps replenishing. Reading such a level as strong demand from many buyers, when it may be one algorithm, is a standard misreading of the tape.
Worked example
A 1,00,000-share order with a 5,000-share disclosed quantity shows only 5,000 to the market. Twenty refreshes later it is done, and an observer watching the book saw a 5,000-share bid that never seemed to disappear.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Iceberg Order” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.