What Is “Iceberging” and How Does It Relate to Minimizing Slippage for Large Trades?

Iceberging is a type of large order where only a small portion is visible in the order book, while the rest remains hidden. This technique is used to mask the true size of a large trade, preventing other traders from front-running or moving the price against the order.

By revealing the order in small, sequential chunks, the trader minimizes the immediate price impact and subsequent slippage that a single, massive order would cause. It's a common strategy for institutional traders.