Why Would a Trader Choose a Public Iceberg Order over a Completely Hidden Dark Pool Trade?

A trader might choose an iceberg order to interact with the broader liquidity available on a public exchange, potentially leading to faster execution than waiting for a match in a less liquid dark pool. Displaying a small part of the order can also signal some trading interest, which can help attract counterparties.

Furthermore, some traders prefer the transparent price discovery of public markets and may want to avoid the potential for unfavorable price matching that can sometimes occur in opaque dark pools. It offers a balance between anonymity and access to public liquidity.