How Do "Iceberg Orders" Attempt to Mitigate Information Leakage on a CLOB? ⎊ Path

How Do “Iceberg Orders” Attempt to Mitigate Information Leakage on a CLOB?

An iceberg order is a large limit order that is electronically submitted but only a small portion (the "tip") is publicly displayed on the CLOB. Once the tip is executed, the system automatically refreshes the display with another small portion of the total order.

This hides the true size of the institutional interest, reducing the market's ability to front-run the order.

How Do Dark Pools Differ from Iceberg Orders in the Context of Hiding Trade Intentions?

What Is ‘Information Leakage’ in the Context of a Public Order Book?

How Does Front-Running Relate to Information Leakage in Public Crypto Markets?

What Is “Information Leakage” and Why Is It a Concern on a CLOB for Large Orders?

How Do ‘Iceberg Orders’ Attempt to Minimize Market Impact on Public Exchanges?

How Does ‘Market Impact’ Affect the Choice between RFQ and CLOB for a Large Options Order?

How Does the “Front-Running” Issue Manifest Differently in AMMs versus CLOBs?

What Is a ‘Dark Pool’ and How Does It Mitigate Information Leakage for Block Trades?

Glossar

Iceberg Order

Display ⎊ The iceberg order is a specialized limit order that strategically manages the visibility of a large trading volume on the exchange's order book.

Information Leakage

Concept ⎊ Information leakage refers to the unintentional or unauthorized disclosure of sensitive trading information that can be exploited by other market participants.