Iceberg strategy FAQs

Published on Aug 4, 2023Updated on May 16, 20242 min read14

What is the Iceberg strategy?

An iceberg order is an algorithmic order that allows you to:

  • Slice large orders into multiple small orders

  • Orders will be placed on the market according to their preferred mode (Quick execution/Price-speed balance/Passive queuing)

When one of the smaller orders has completely filled, or the level changed from the initial orders, the system will check the depth and place the order accordingly.

Can I have an example of how it works?

Sample Case (BTC/USDT) A user wants to buy BTC while the price is lower than 35,000 USDT, and he'd like to buy it with Iceberg bot.


Interface of Iceberg trading bot

How to set it?

  1. Set the Amount per order as 0.1 BTC

  2. Setting the Number of visible order as 5

  3. Set the Order amount as 5 BTC

  4. In Advance settings, set the preference as Price-speed balance

  5. Setting the Limit price at 35,000 USDT

  6. Set the Start condition as Instant

What would happen?

  1. 5 orders will be placed in the order book

    • 1st limit buy order will be placed at the current middle price (Ask 1 + Bid 1)/2

    • The 2nd limit buy order will be placed at Bid 1 price, whereas the 3rd one at Bid 2 price, etc

  2. The amount per order is around 0.1 BTC (multiplied by the random number)

  3. If the price goes up to higher than 35,000, the order would be temporarily halted

  4. If the order is filled, new orders will be placed according to the latest position in the orderbook

  5. If the change of price causes ask/bid levels changed, existing orders will be canceled and new orders will be placed based on the latest orderbook

Where can I know more about Iceberg bot and other trading bots?