What Is ‘Order Splitting’ and How Does It Mitigate Leakage?

Order splitting, or 'slicing and dicing,' is the strategy of breaking up a single large block trade into many smaller, less conspicuous orders. These smaller orders are then executed over time or across different venues, including dark pools and lit exchanges.

This approach mitigates information leakage because no single large order is visible, reducing the risk of front-running and minimizing market impact.