GAEA Investment Research Center — Today’s topic is about what professionals refer to as an “Iceberg Order”. It is aimed to solve a huge problem in the transaction — the cost of impact. Whether you are an investor in the stock or coins market, you may have not been exposed to this problem because of limited funds.

So, imagine that you are a fund manager in a large organization with hundreds of millions of dollars. After thoroughly researching a company, you have decided to buy a huge amount of stocks. This presents the risk of the cost of impact. The amount you want to buy is so huge that the price will be skyrocketing! This soaring cost is the impact cost.

Some investors such as yourself are very realistic. You are aware that you will not have this amount of money in the short term to continue the trade, so you may not be interested in Iceberg Orders.

However, consider these two situations. In the first situation, you want to sell your minor coins to cash out in USDT. Yet you feel the cost of a poor market depth. In the second situation, you’ve chosen to participate in an ICO and let us assume it has skyrocketed. You would want to sell. In this context, the Iceberg Order will show you its hidden advantages.

An Iceberg Order serves as a hidden order. The so-called hidden order means that the limit order is invisible in the market. This allows traders to hide their strategic intentions.

To further explain the Iceberg Order, we will look into the following example. To begin your order, you need to input the total amount to be filled, the limit price and the number of contracts displayed at a time. For example, if you want to trade 10,000 contracts, the order will show 10 contracts at a time after setting the limit price. The remaining 9,990 will continuously be dealt on a 10-contracts per view basis.