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.