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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