An iceberg order exposes only part of a larger intended order to the market at a time. The remaining quantity stays undisplayed until further portions are released, limiting how much of the trader’s intended size is visible in the order book.
Visible portions and replenishment
Suppose a trader wants to sell 1,000 tokens with a displayed portion of 100. In a simple implementation, 100 are offered first; after that portion fills, another 100 are released until the total is completed or the strategy stops. Partial fills and replenishment rules depend on the implementation.
A venue may support hidden reserve quantity within an order or provide an algorithm that submits separate child orders. Price settings, queue priority, cancellation behavior, and maker or taker treatment therefore require product-specific checks.
Less visibility does not remove impact
Splitting an order can reduce the amount displayed simultaneously, but repeated replenishment and completed trades may reveal a larger trading pattern. The total transaction can still move prices.
Iceberg execution is organized around visible portions; TWAP execution is organized around a time schedule. Neither guarantees completion or a better price. Review total executed quantity and remaining orders when modifying or stopping the strategy.