Iceberg Order

Iceberg Order

An order to buy or sell a large amount of a security in smaller quantities. Iceberg orders are often executed using a computer program that executes each tranche in succession at certain time. Institutional investors may use iceberg orders so observers do not see the sudden increase in interest in a security, which would likely cause a fluctuation in price. The term comes from the observation of a tip of an iceberg above the water, which only reveals a small part of the full iceberg.
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An iceberg order refers to a type of order where only a small part of the order book volume is visible, in order to avoid major price movements.
Singapore, Jan 3, 2012 - (ACN Newswire) - Singapore Exchange (SGX) is consulting the public on its proposal to remove the engine-level iceberg order functionality in the securities and derivatives markets.
The iceberg order functionality is utilised primarily by investors who trade largequantities.
TOKYO -- Instinet, a global leader in electronic trading and agency-only brokerage, today announced that its Instinet Japan Limited subsidiary has added hidden and iceberg order types to CBX ASIA([TM]) in Japan, previously a fully displayed trading venue.
Agency-only brokerage adds additional VWAP cross to JapanCrossing and Iceberg order type to CBX ASIA
The new fee schedule comes on top of a series of other cost-friendly features at Alpha: free opening trades, an existing '25 mils / -21 mils' fee structure for all securities with a value greater than or equal to $1 and a value below $5, full rebates on iceberg orders, not capping rebates and the lowest active / passive ratio for dealers posting their resting orders on Alpha.
This new functionally includes full charting capabilities, pre-trade allocation, and the ability to process iceberg orders.
The fact that Alpha does not charge for opening auction trades and provides a full rebate on iceberg orders represents millions of dollars of additional monthly savings to the industry that market participants can benefit from when trading on Alpha.
Synthetic iceberg orders on CQG rely on server-side technology to place iceberg-style orders while monitoring the order book to recognize and react to favorable market conditions that last only a millisecond.
These benefits, including a higher likelihood of execution for resting orders, a balanced fee structure during continuous trading that takes all market participants interests into consideration, a full rebate on iceberg orders and no fees for opening trades, are some of the key drivers behind this evolution.
In addition to standard order types such as Market, Limit, Stops, Hidden and Iceberg Orders, Currenex's Conditional Orders have been added to allow traders to define separate orders that are linked to each other and set to react based on predefined parameters.