What is an 'Iceberg Order'

An iceberg order is a large single order that has been divided into smaller lots, usually through the use of an automated program, for the purpose of hiding the actual order quantity.

BREAKING DOWN 'Iceberg Order'

When large participants, such as institutional investors, need to buy and sell large amounts of securities for their portfolios, they can divide their large orders into smaller parts so that the public sees only a small portion of the order at a time - just as the 'tip of the iceberg' is the only visible portion of a huge mass of ice. By hiding its large size, the iceberg order reduces the price movements caused by substantial changes in a stock's supply and demand.

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    Learn how a limit order is placed, the types of stocks it is most useful for and the specifications placed with it to suit ... Read Answer >>
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  4. What is the difference between a buy limit and a sell stop order?

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  5. Why do limit orders cost more than market orders?

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