Icebergordrer

Icebergordrer is a Norwegian term that translates to "iceberg orders" in English. In financial trading, these are a type of order used to discreetly buy or sell large quantities of securities without revealing the full size to the market. This strategy aims to minimize market impact and prevent significant price movements caused by large order disclosures.

An iceberg order is structured with a predefined maximum quantity, known as the "visible part" or "resting order," which is displayed on the order book. The remainder of the order remains hidden until the visible portion is executed. Once the displayed part is filled, an additional portion of the concealed order is revealed to the market, continuing the process until the entire order is completed or canceled. This process allows traders to execute large transactions gradually and discreetly.

Iceberg orders are widely used by institutional investors and large traders who need to minimize market disruptions and avoid revealing their trading intentions. They are supported by most electronic trading platforms and are often employed in combination with algorithms designed to optimize execution.

While iceberg orders offer advantages in strategic concealment, they also require careful management to avoid detection or unintended consequences. Regulatory considerations in some markets may impose restrictions or require disclosure of such orders, depending on jurisdictional rules.

Overall, iceberg orders are a valuable tool in sophisticated trading strategies, balancing the need for large position management with market integrity and efficiency.