About Iceberg Orders

Iceberg Orders are orders where only a small part of the overall size is visible to market participants. They allow institutional traders to place large orders in the market without "showing their hand". This is the way institutions and market makers disguise their intentions and avoid a direct influence on the price.

Definition

Iceberg Orders are special types of orders that split large orders into multiple smaller parts in the order book so at any time traders only see a fraction of the whole order placed by the institutional traders. The algorithms decide how Iceberg Orders are placed. Parts of the Iceberg may be placed actively (market orders) while other parts are transacted passively (resting orders). In general, there are two (2) types of Iceberg Orders.

Native Iceberg Orders

Native Iceberg Orders are placed by the Stock Exchange's algorithm. Based on the trader's strategy, the Stock Exchange's Algorithm decides how the Iceberg will be split up. This Iceberg activity can be traced in real-time through the algorithm. Please note: To detect Native Iceberg Orders and trace them in real-time with Iceberg Detector for ATAS, you will need a Full-Depth MBO Data feed.

Synthetic Iceberg Orders

Synthetic Icebergs are calculated and fractionalized by a trader's software off the exchange. The software splits the orders and places parts of the Iceberg individually with separate orders at the Stock Exchange when the trigger conditions are met. They are harder to detect and cannot be traced in real-time.

Example

Native Iceberg Orders are depicted on the chart. A line representing Icebergs is also drawn in the sub-chart.

Iceberg Orders are shown on chart. In addition they are represented as a line in the subchart as well as in the Iceberg Volume Profile.