What Is a ‘Hidden Limit Order’ and Is It Compatible with Stop-Limit Functionality?
A hidden limit order, or 'iceberg order,' is a large limit order where only a small portion is displayed on the order book, while the rest remains concealed. This is used to prevent market front-running.
While exchanges may offer hidden limit orders, they are generally not compatible with the trigger mechanism of a stop-limit order, which requires the order to be inactive until the stop price is hit. However, the resulting limit order after the trigger may sometimes be placed as a hidden order, depending on the exchange's rules.
Glossar
Hidden Limit Order
Anonymity ⎊ A hidden limit order, often referred to as an iceberg order in its partial display form, is a non-displayed order type designed to mask the true size of a large trading interest.
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.
Large Limit Order
Order ⎊ A large limit order represents a significant commitment of capital to buy or sell a crypto asset or derivative at a predetermined price, resting passively on the exchange's order book.
Limit Order
Instrument ⎊ A limit order is an instruction to trade an asset at a specified price or better, providing the trader with precise control over the entry or exit cost, unlike a market order.
Stop Price
Trigger ⎊ A stop price, within cryptocurrency derivatives and options trading, functions as a conditional order execution point, initiating a market or limit order when the specified price level is reached.