An iceberg trade is usually executed by large institutional investors.
Iceberg orders, also known as reverse orders, are primarily used by market makers, which is another word for a person or company that offers bids and asks. When it comes to such large crypto transactions, we are mainly talking about institutional crypto investors. They often trade large amounts of cryptocurrencies, which can have a huge impact on the market.
As an observer, it is possible to search for the order in the order books, but only a small part of the market maker’s iceberg orders is visible in the level 2 order books. Level 2 order books, in the crypto world , contain all bids and asks on an exchange, including price, volume, and timestamp; Real-time data collection.
They call it the tip of the iceberg for a reason: the rest of the order is “below the surface of the water.” For smaller investors, such as private traders, placing an iceberg order is unusual.
This post What is an Iceberg order and how to use it?
was published first on https://cointelegraph.com/explained/what-is-an-iceberg-order-and-how-to-use-it