Orders & execution
What is an Iceberg Order and how do institutional algorithms disguise their size?
By Easy Money Scanner · Educational reference · Not investment advice
The short answer
An Iceberg order displays only a small visible portion of a much larger total order on the public order book, allowing institutions to buy or sell large blocks without revealing full size to the market.
How it works
As the visible portion fills, another small slice automatically replenishes from the hidden reserve, repeating until the full order is complete, minimizing market impact from large trades.
An example
A fund wants to sell 500,000 shares but displays only 5,000 at a time, refreshing the visible quantity as each slice executes to avoid spooking the market.
Risk & limitations
Retail traders cannot see the true size behind iceberg orders, making it difficult to gauge real supply and demand from order book depth alone.
Examples are hypothetical, not trade recommendations. US contract and regulatory references do not automatically apply in Canada. Rules, margin requirements and broker policies can change; confirm them with the relevant authority and your broker.