This order type divides a large order into several tranches, where each segment is sent to the order book only once the prior one has been filled. 

How it worksIceberg order explained

Iceberg orders divide a large order into smaller tranches that are deployed on the Order Book sequentially and only after the prior one has been fully executed. 

This order type is primarily done by institutional traders, in instances where over-the-counter trading might not be possible or desired due to execution costs or the inability to make the OTC connection quick enough to execute the order before the opportunity has disappeared.

Illustrative AXO price: 12.5 ADA
Use case

How it is used

Kathryn is an early adopter of Cardano, and has thus managed to acquire a considerable portfolio. Given her large holdings, when she invests in a project she can single-handedly affect the price. Moreover, when she makes big moves, it can trigger bots and alarms that are observing blockchain activity and looking to take advantage of it. Consequently, when she makes large purchases, she does it via an iceberg order. Not only does this limit the effect she has on the price of the asset, but it is also a far more discrete means of executing transactions. She used to transact 10,000 ADA sums manually, but now she can transact 100,000 ADA with one transaction as 10 sequential trades, this way the market does not know her full intention of transacting 100,000 ADA which might have otherwise caused the market to move against her.

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