An iceberg order is a type of trading order used in financial markets to conceal the full size of a large trade from other market participants. This type of order allows traders to purchase or sell large quantities of an asset without revealing the full extent of their position.

The term "iceberg" refers to the idea that the visible portion of the order represents only a small fraction of the total order, much like how only a small portion of an iceberg is visible above the waterline.

To use an iceberg order, a trader would enter an order to buy or sell a large quantity of an asset, but only a smaller portion of the order will be displayed on the order book. As the visible portion of the order is executed, the remaining portion will be gradually revealed, allowing the trader to avoid disrupting the market with a large order.

Iceberg orders can be useful for traders who need to execute large trades without causing a significant price impact on the market, as well as for traders who want to keep their trading strategies hidden from other market participants.

An Iceberg order is a type of large order broken into smaller, visible chunks to minimize its impact on the market. Only a small portion of the total order is visible in the order book, while the rest remains hidden. Once the visible part is filled, another small portion becomes visible, repeating this process until the entire order is executed.

Traders use Iceberg orders to avoid signaling their full trading intentions, which could lead to adverse price movements if the market detects a large order. It is particularly useful for institutions or large traders looking to buy or sell significant volumes without disrupting the market. By keeping the order discreet, traders can achieve more favorable prices over time while maintaining market stability.