What Is the Concept of "Hidden Liquidity" in an Order Book? ⎊ Path

What Is the Concept of “Hidden Liquidity” in an Order Book?

Hidden liquidity refers to order volume that is not immediately visible in the public order book. This is often achieved through "iceberg orders," which are large orders broken into smaller visible parts.

While the full depth is not seen, the presence of these large hidden orders suggests a higher true market depth than appears, which can reduce slippage risk for large incoming market orders.

What Is a ‘Hidden’ or ‘Iceberg’ Order and How Does It Relate to Market Impact?

How Does an ‘Iceberg Order’ Mask the True Size of a Large Order on a Public Exchange?

How Does Order Book Depth Relate to the Trustworthiness of an Exchange’s Volume?

What Is a “Hidden Order” and How Does It Interact with the Visible Bid-Offer Spread?

Define ‘Iceberg Order’ and Its Impact on Perceived Order Book Depth

What Is the Primary Risk Associated with Using an Iceberg Order?

What Is the Counterparty Risk of Trading against a Known Iceberg Order?

How Does ‘Spoofing’ or ‘Wash Trading’ Distort the Perception of Volume and Spread?

Glossar

Hidden Orders

Order ⎊ These represent limit or stop orders placed on an exchange order book that are intentionally obscured from general view, often residing in a private matching queue.