What Are Iceberg Orders in Crypto Trading?

Iceberg orders are a type of algorithmic trading order that automatically breaks down a large buy or sell order into multiple smaller visible orders, executed gradually over time.

This approach helps traders—especially institutional or whale traders—hide their true order size, reduce slippage, and minimize market disruption.

Just like an iceberg hides most of its mass underwater, an iceberg order reveals only a small “tip” of your total order to the market.

How Iceberg Orders Work

Iceberg orders are made up of a series of limit orders that are refreshed automatically as soon as one is filled.

For example, a trader who wants to buy 50 BTC can place an iceberg order with visible portions of 1 BTC each. Every time one 1-BTC order executes, the system automatically places the next one—until all 50 BTC are filled.

Benefits:

• Avoids sudden price swings caused by large single orders.
  
• Provides better average execution prices.
  
• Conceals trading strategy and volume from other participants.
  

Another popular algorithmic strategy is TWAP (Time-Weighted Average Price), which spreads trades evenly over time. Iceberg orders, on the other hand, adapt dynamically to order book changes.

Iceberg Orders on CoinW

CoinW allows traders to create customized iceberg orders with full control over price logic, order amount, and execution style.

The system automatically re-issues sub-orders when:

• The previous order is filled, or
  
• The market price deviates from your set buy/sell range.
  

This ensures your total trade completes efficiently, without causing large price fluctuations.

Key Parameters and Settings

 

 

Iceberg Order: Buy Example

Scenario:

• BTC current price: $60,000
  
• Max Buy Price: $63,000
  
• Highest Bid: $59,000
  
• Lowest Ask: $61,000
  

Quick Execution: Places at $61,000 (lowest ask). Each filled order triggers a new one at the updated lowest ask.

Better Price: Places at $60,000 (midpoint). Each fill recalculates and places a new midpoint order.

Passive Queue: Places at $59,000 (highest bid). New orders appear at each updated highest bid level.

Iceberg Order: Sell Example

Scenario:

• BTC current price: $60,000
  
• Min Sell Price: $58,000
  
• Highest Bid: $59,000
  
• Lowest Ask: $61,000
  

Quick Execution: Places at $59,000 (highest bid). New order placed at updated highest bid.

Better Price: Places at $60,000 (midpoint). Orders continue at recalculated midpoints.

Passive Queue: Places at $61,000 (lowest ask). Each fill triggers a new lowest-ask order.

Notes and Safety Rules

1. If market prices deviate beyond a preset threshold, CoinW cancels and re-places the order to prevent slippage or loss.

2. Orders are automatically canceled if:

• Your account is suspended.
  
• A token is delisted.
  
• The remaining order amount is below CoinW’s minimum trade size.

3. Iceberg orders can be used alongside API trading or TWAP, but avoid overlapping parameters.

Pro Tips

• For Institutions: Combine iceberg logic with CoinW’s API endpoints for advanced multi-exchange execution.
  
• For Retail Traders: Use the Better Price mode to balance discretion and execution efficiency.
  
• For Low-Liquidity Pairs: Iceberg orders can help reduce visible impact on thin order books.
  
  

In Conclusion

Iceberg orders are an advanced trading feature that allows traders to execute large positions smoothly, discreetly, and efficiently. Whether you’re a professional trader or managing large portfolios, CoinW’s iceberg order feature gives you algorithmic control to trade big—without moving the market.

Trade on CoinW today and make use of its powerful iceberg order feature!

 

FAQs

1. What is the purpose of an iceberg order in crypto trading?
To split large trades into smaller ones, keeping total volume hidden and reducing the market impact.

2. How is an iceberg order different from TWAP?
TWAP executes evenly over time, while iceberg orders reveal and refresh only small visible portions based on order book activity.

3. Who uses iceberg orders?
They are commonly used by institutions, whales, and algorithmic traders aiming to buy or sell large positions without drawing attention.

4. Can iceberg orders fail to execute?
Yes, if market conditions move outside your set price limits or the trading pair loses liquidity.

5. Is there a fee difference between Quick Execution and Passive Queue?
Yes. Quick Execution often incurs taker fees for instant fills, while Passive Queue may qualify for lower maker fees or rebates.