A trader on the (computer) exchange wants to execute a high-volume order. He splits this order into small parts and enters only these parts into his order book. Once one part of the order has been executed, the next partial order is automatically entered until the entire intended transaction has been completed. – For the trader, this has the advantage that the volume of his order is not immediately visible to the market and other traders. Significant takeovers (such as that of Hoesch AG by Fried. Krupp in Essen in 1991) have been effected by iceberg orders. – See card stack, market impact, denomination, confidentiality. – Cf. 2006 Annual Report of BaFin. P. 173 (abusive orders).
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