Iceberg orders are a type of trading strategy used to break large orders into smaller, less visible pieces to minimize market impact and avoid revealing the full extent of the trade. Here are some key points about iceberg orders:

- _Divided into smaller lots_: Large orders are divided into smaller lots, typically 100-500 shares, to reduce visibility.

- _Only a small portion visible_: Only a small portion of the total order is visible in the order book, while the remaining shares are hidden.

- _Gradual execution_: The smaller lots are executed gradually, often over a period of time, to avoid sudden price movements.

- _Reduced market impact_: By breaking up the order, the market impact is reduced, and the trader can avoid influencing the price.

- _Used by institutional traders_: Iceberg orders are often used by institutional traders, such as hedge funds and investment banks, to execute large trades without revealing their full position.

- _Also known as " reserve orders"_: Iceberg orders are also referred to as "reserve orders" or "hidden orders".

- _Can be used for both buy and sell orders_: Iceberg orders can be used for both buying and selling, and can be applied to various financial instruments, including stocks, options, and futures.