Iceberg
The Iceberg strategy minimizes market impact by splitting large orders into smaller, discrete slices. Each slice is placed sequentially as the previous one fills, preventing the full order size from being exposed to the market.
How It Works
The Slices parameter determines how many smaller orders the parent order is split into.
Each slice size is randomized within a ±5% range to reduce the risk of market participants detecting the order pattern.
If multiple accounts are selected, the engine selects the venue with the best price for the first slice and continues routing all subsequent slices to that venue.
The platform displays only one order placement for the parent order, while individual fills appear in the Fills section.
When to Use This Strategy
Large Orders – Ideal for executing sizable trades without revealing the full order size.
Reducing Market Impact – Helps prevent price movement by keeping order sizes small.
Maintaining Anonymity – Useful when traders want to conceal the full extent of their positions.
Potential Drawbacks
Slower Execution – Large orders may take longer to complete, depending on market conditions.
Venue Lock-In – Once the first slice is executed at a venue, all subsequent slices are sent to the same venue, even if better prices emerge elsewhere.
This strategy is best for traders looking to execute large trades discreetly, reducing market impact and visibility while maintaining controlled execution.
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