What is the meaning of iceberg chart in the context of cryptocurrency?

3 answers

• jjp0483Jun 30, 2025 · a month ago
  An iceberg chart in the context of cryptocurrency refers to a visual representation of the depth of the order book. It shows the visible orders on the chart, while hiding the larger hidden orders. This is done to prevent other traders from knowing the true size of the order and potentially manipulating the market. The iceberg chart is commonly used by institutional investors and large traders to hide their intentions and prevent slippage. It is an important tool for maintaining liquidity and reducing market impact.
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• RanjithkJun 15, 2023 · 2 years ago
  Imagine an iceberg floating in the ocean, where only a small portion is visible above the water surface. Similarly, an iceberg chart in cryptocurrency trading shows only a small portion of the total order size, while the majority remains hidden. This hidden portion is often much larger and represents the true size of the order. By hiding the full order size, traders can prevent others from front-running their trades or causing significant price movements. It's like a secret weapon for large traders to execute their orders without disrupting the market.
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• Erica EstevesOct 16, 2020 · 5 years ago
  In the context of cryptocurrency trading, an iceberg chart is a tool used by traders to hide the full size of their orders. It allows them to place large orders without revealing the entire quantity to the market. This can be beneficial for traders who want to avoid slippage and prevent others from taking advantage of their positions. By only showing a small portion of the order, the iceberg chart helps maintain market stability and reduces the impact of large trades. It's a common practice among institutional investors and experienced traders to use iceberg orders to execute their strategies effectively.
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