What it means
An iceberg is a large order configured to display only a small fraction of its total size in the book at any time. As the visible 'tip' fills, the order automatically replenishes from the hidden remaining size until the full order is executed. Used by institutional traders to avoid signalling large flow to the market.
Why it matters
Plain large orders display their full size in the order book, signalling intent to every algorithmic trader watching the book. The signal moves prices against the order before it executes, raising the realised cost. Icebergs hide the actual size, allowing institutional flow to execute closer to the theoretical fill price.
How to use it
Available on most institutional and prime-broker FX platforms. Retail FX brokers rarely offer iceberg ordering directly. For retail size (under $1M notional), icebergs are usually unnecessary because the visible book depth at the inside spread already absorbs typical retail trade sizes.
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