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Iceberg Order
(redirected from Iceberg Orders)

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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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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.
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.
 
 
 
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