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Market Intelligence › Basic Terminologies
How disclosed quantity works and what problem it solves
Published by The Retail Trader · JUL 31, 2026 · Order Flow
If you put a large order into the market all at once, it is visible across the whole depth, and price can move against you. The iceberg order is the answer to this very problem.
You give both the total quantity and the disclosed quantity. Only the disclosed portion shows in the market; when it fills, the next portion comes in on its own.
Each new piece joins the queue like a new order, so time priority is rebuilt every time. That is why this method hides your size but does not give you speed.
These trade-offs come with it:
• Each leg can be treated as a separate order, so some brokers charge separately too.
• Because time priority resets again and again, the full fill comes slowly.
• In a very illiquid stock it still cannot protect you — there the whole order itself is big.
• The rules for the minimum disclosed quantity are set by the exchange.
At retail size an iceberg is generally not needed — at that size you do not move the depth at all. This tool matters when your order is much bigger than the average trade size of that stock.
This article is for educational purposes only — it is not a buy or sell recommendation, makes no claim of guaranteed returns, and is not advisory. Rules, rates and mechanics are changed by the exchanges, SEBI and RBI from time to time, so verify every number yourself with your broker or the official source.