Iceberg order allows you to slice a large quantity order into multiple smaller quantity orders, or multiple legs, which are executed sequentially. These legs will be sent to exchange one by one, i.e. when one leg gets executed completely, only then the next leg will be sent to exchange for execution.
E.g. If you want to buy 1800 quantities of NIFTY derivative contract then instead of placing a single order of 1800 quantities, you can place an iceberg order with 6 legs of 300 quantities each. Where, the first leg of 300 quantities will be sent to the exchange for execution and once all the quantities are fulfilled, the next leg of 300 quantities will be sent to the exchange for execution.
This will help you to place large orders without disclosing the large quantity in market depth. However, Iceberg orders can be placed as Regular Limit orders in the F&O segment of NSE and MCX. Iceberg orders are not available in the equity segment.
How to place an Iceberg order
Go to the order placement screen.
Select Intraday or Carryforward.
Input the number of lots.
Select Limit order type & Input price for the order.
Select the “Iceberg” button & input the number of legs.
Tap the “Buy” or “Sell” button.
How to modify or cancel an Iceberg order
Tap on the Iceberg order from the “Pending” order screen
Tap on the “Modify” button and modify the price
Tap the “Buy” or “Sell” button. Only the remaining non-executed quantity and legs price will be modified e.g. if an iceberg order had 6 legs out of which 2 legs have already been executed then modifying the price will change the price of current leg and the remaining 3 non executed legs
To cancel the Iceberg order tap on the Iceberg order from the “Pending” order screen
Tap on the “Cancel” button. Only the remaining non-executed quantity and legs will be cancelled. For instance, If we take an iceberg order with 6 legs, where 2 legs have already been executed and half the quantity of the current leg is executed, cancelling the order would entail cancelling half the quantity of the current leg and the remaining 3 legs.
Note:
1. Margin for all the quantities is not blocked at the time of iceberg order placement. Instead, it gets blocked as the legs are sent to exchange for execution. For instance, if a 1000-quantity order is divided into 10 legs of 100 quantities each, then the margin for only the first 100 is initially blocked. As this initial leg is fully executed, the margin for the subsequent 100 quantities is then blocked.
2. Since each leg is a separate order, brokerage charges will depend on the number of legs executed. E.g. If a large order is executed into 6 legs then the brokerage charged will be equal to 6 executed orders.
3. The number of legs per iceberg order is a minimum of 2 and a maximum of 10.