Iceberg orders are semi-dark orders placed within light order books. Semi-dark in the sense that such orders have an apparent (disclosed, visible, peak) quantity and a hidden quantity – with the first being usually smaller than the latter.
In many markets, such as in Euronext, when the apparent quantity is fully fulfilled, the order goes to the end of the queue (within the same price limit) with new apparent and hidden quantities.
Iceberg orders are used by investors to execute bloc transactions, as they mitigate market impact.
For such reasons, investors are usually only allowed to place iceberg orders when the quantity to trade is significant. For example, at Euronext, iceberg orders must be larger than 10.000 Eur – the order is automatically converted into a transparent order if the its value falls under such threshold.
In many markets, such as in Euronext, when the apparent quantity is fully fulfilled, the order goes to the end of the queue (within the same price limit) with new apparent and hidden quantities.
Iceberg orders are used by investors to execute bloc transactions, as they mitigate market impact.
For such reasons, investors are usually only allowed to place iceberg orders when the quantity to trade is significant. For example, at Euronext, iceberg orders must be larger than 10.000 Eur – the order is automatically converted into a transparent order if the its value falls under such threshold.
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