What it means
A hidden order is a non-displayed limit order — invisible to all participants until it executes. Common on equity ECNs and some FX ECN venues. Distinct from iceberg orders (which display a small visible portion). Hidden orders trade off display priority (visible orders fill first at the same price) for non-signalling.
Why it matters
Hidden orders solve the same problem icebergs do — avoiding adverse selection from signalling large intent — but more aggressively. Trade-off: hidden orders don't get queue priority, so they execute only after all visible orders at the same price have filled, potentially missing fills entirely if competing visible orders absorb the available counterparty.
How to use it
Used primarily by institutional flow seeking to minimize market impact on large size. Retail platforms rarely offer hidden order types; pro platforms (Interactive Brokers TWS, IBKR ECN, FXPRO) do.
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