Iceberg orders represent an advanced trading strategy designed for executing large-volume transactions while minimizing market impact and slippage. This automated approach breaks down substantial orders into smaller, discreet portions, enabling traders to enter markets efficiently without disrupting price stability.
Why Iceberg Orders Matter
- Reduced Market Impact: Conceals the full order size, revealing only small portions at a time.
- Slippage Mitigation: Gradual execution prevents large price fluctuations typical of bulk trades.
- Stealth Trading: Masks trading intentions from competitors and market makers.
Key Features of Bybit's Iceberg Orders
1. Limit Price Configuration
Users can set price ceilings/floors to maintain control in volatile markets. The system automatically pauses orders when market conditions become unfavorable.
2. Order Size Obfuscation
Only a fraction of the total order appears in the order book at any time. Example: A 6 BTC order might execute as ten 0.6 BTC sub-orders.
3. Four Execution Preferences
| Preference Type | Execution Style | Best For |
|---|---|---|
| Chase Limit (Taker) | Aggressive fills at top bid/ask | Time-sensitive traders |
| Chase Limit | Balanced speed/price | General discretionary trading |
| Limit with Offset | Price-protected execution | Cost-conscious large orders |
| Fixed Price | Strict limit order style | Precise entry/exit strategies |
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Operational Mechanics
Parameter Setup:
- Total order quantity
- Sub-order size/number
- Price limits
- Execution preference
Automated Execution:
- System releases sub-orders sequentially
- Each sub-order executes before the next activates
- Process continues until full quantity fills
Example Flow:
- Trader sets 6 BTC buy order
- System divides into 0.6 BTC sub-orders
- First sub-order executes at best bid
- Subsequent orders trigger after prior fills
- Process completes when 6 BTC accumulates
Platform-Specific Considerations
Spot Trading Rules
- Maximum total order size: 100x standard limit
- Sub-order cap: Standard maximum trade size
Contract Trading Parameters
- Maximum order size: 20x standard limit
- Sub-order limit: 5x standard size
⚠️ Restrictions:
- Not available in demo accounts
- Maximum 10 active strategies per account
- Expires after 28 days of inactivity
FAQ: Iceberg Order Essentials
Q: How do I cancel an iceberg order?
A: Navigate to your active orders panel and select "Terminate." Orders also auto-cancel upon: insufficient funds, position mode changes, or risk limit breaches.
Q: What's the main advantage over regular limit orders?
A: Iceberg prevents front-running by hiding your full position size, while standard limit orders expose your entire order volume.
Q: Can I modify an active iceberg order?
A: No, parameters cannot be adjusted after submission. You must cancel and recreate the order.
Q: How long do partial orders remain active?
A: Unfilled sub-orders expire after 7 days, with full strategy termination occurring at 28 days.
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Implementation Guide
Mobile Execution (Bybit App)
- Access trading interface
- Select desired trading pair
- Choose "Iceberg Order" from type menu
Configure:
- Total quantity
- Sub-order parameters
- Execution preference
- Price limits
- Confirm details and execute
Pro Tip: Monitor execution progress via "All Orders" tab. Terminate early if market conditions change dramatically.