What Is an Iceberg Order?
An iceberg order is a large order split into smaller batches for discreet execution. When placing substantial trades, investors use this strategy to avoid significant market impact by automatically dividing large orders into multiple smaller ones.
The iceberg strategy calculates the order price based on the current best bid/ask price and the user-set price distance. It then places small incremental orders. If the previous order is fully filled or the market price deviates significantly from the current order price, the system automatically re-submits new orders.
Step-by-Step Guide to Iceberg Orders
1) Setting Up an Iceberg Strategy
Example for BTC/USDT:
- Open the OKX App and navigate to [Trade] > [Strategy].
- In the Strategy Marketplace, select [Iceberg Strategy].
- Choose Buy or Sell, input the required parameters (e.g., order quantity, price distance from the market), and confirm by clicking [Buy BTC] or [Sell BTC].
Key Parameter:
- Price Distance from Market: The percentage or fixed price gap between your order and the current market price (the "order book" displays real-time bid/ask levels).
2) Stopping an Iceberg Strategy
Go to [Strategy Trading] > [Active], select the iceberg order, and click Stop. Alternatively, review detailed metrics under [Strategy Details].
FAQs
Q: Can iceberg orders guarantee execution at my desired price?
A: No. Prices fluctuate based on market conditions. The strategy adapts but doesn’t override real-time supply/demand.
Q: What happens if the market crashes during execution?
A: The strategy auto-pauses if the asset is halted/delisted or if volatility exceeds predefined limits.
Q: Are iceberg orders suitable for beginners?
A: They require understanding market mechanics. 👉 Learn advanced trading tactics here.
Risk Management Tips
- Monitor Market Conditions: Iceberg orders don’t protect against sudden price swings.
- Assess Risks: Review OKX’s product documentation before use. 👉 Explore risk management tools.
Note: OKX isn’t liable for losses from force majeure events (e.g., exchange outages).
Strategies are tools—not guarantees. Adapt parameters to your trading style.