What Are Iceberg Orders?

Iceberg orders: the hidden side of market liquidity

An iceberg order is a large order where only a portion of the total quantity is displayed to the market at a time.

For example, a participant may want to buy a large number of contracts without displaying the entire order quantity upfront.

As displayed quantities are executed, additional quantity may become available.

Why does this matter to order flow traders?

Repeated executions at a price, combined with replenishing displayed liquidity, can suggest that a larger order is being worked.

However, not every large execution or repeated order is an iceberg.

The lesson is simple: focus on observable execution behavior rather than assuming you know the identity or intentions of the participant behind it.