Iceberg Pro is commonly used to handle large orders by splitting them into smaller ones to control market impact, hide trading intent, and prevent significant price fluctuations.
This strategy is suitable for all perpetual futures trading (including USDT-M and BTC-M contracts). Iceberg Pro calculates the number of split orders and the size of each order based on user-defined parameters. Let’s take an example.
Web Version
1. Place Order
Step 1: Select the currency pair to be traded on the trading page and click on “Iceberg Pro” in the order area.
Step 2: Create your Iceberg Pro order according to the following parameters.
1. Position Mode: Ensure the position mode preference of the selected contract is consistent.
2. Total: Enter the total amount of the order, or use the percentage indicator bar to quickly set the order amount and the proportion of the available margin in the account.
3. Order Splitting Methods: You can set parameters for sub-orders based on two types: amount per order and number of orders. After selecting a splitting method, the system will calculate the value for the other method based on the user-defined parameters. The default splitting method is amount per order.
- Amount Per Order: The amount of each order when executing the Iceberg Pro strategy. After placing the order, the number of sub-orders will be determined based on the user-defined amount per order.
- Number of Orders: The total number of sub-orders to be split when executing the Iceberg Pro strategy. After placing the order, the amount per order will be determined based on the user-defined number of sub-orders.
4. Preference: You can choose your preferred order type when placing orders. This includes three modes: Faster Execution, Better Price, and Fixed Price, with Faster Execution as the default. - Faster Execution: Each order is placed at the best bid or ask price, and the order price will be dynamically adjusted with market price changes to ensure faster execution.
- Better Price: Each order is placed at a fixed distance from the best bid or ask price. When the market price deviates from the order price by a certain distance, the order price will be adjusted to ensure a better execution price.
The formula for calculating the order price is as follows:
| Set by Var. | Set by Ratio |
|---|---|
| Bid Price = Last Highest Bid Price (Buy 1) - Var. | Bid Price = Last Highest Bid Price (Buy 1) x (1-Ratio) |
| Ask Price = Last Lowest Ask Price (Sell 1) + Var. | Ask Price = Last Lowest Ask Price (Sell 1) x (1+Ratio) |
- Fixed Price: Each sub-order is placed at the price you set.
5. Reduce-Only: It is only applicable for perpetual futures trades in one-way mode. In hedge mode, for exit orders, you can switch to the “Close” tab to create an Iceberg Pro order.
6. Advanced Options: Click on “Advanced Options” to set the start conditions and the limit price for the Iceberg Pro order.
Step 3: Double check all the order information you have entered.
2. View / Cancel Orders
After a successful order placement, you can view pending activation or active orders in the “Open Orders” - “Iceberg Pro” at the bottom of the trading page. Orders that have been fully filled or canceled can be viewed in the “Order History”. You can also click the “Details” button to view Iceberg Pro order details.
To cancel an order, you can click the “Cancel” button next to the order in the “Open Orders”.
3. Query Historical Order Records
Completed or canceled Iceberg Pro orders will be displayed in the “Order History”, where you can view historical order records. You can also click the “Details” button to view detailed information about Iceberg Pro orders.
4. Iceberg Pro Details
Iceberg Pro orders that are pending activation, active or terminated all support viewing detailed information. You can click the “Details” button of Iceberg Pro orders in Open Orders or Order History to access the details page to view order status, parameter information and transaction details.
App Version
1. Place Order
Step 1: Select the trading pair to be traded on the trading page and tap to expand more order types in the order placement area, then select “Iceberg Pro.”
Step 2: Create your Iceberg Pro order according to the following parameters.
1. Position Mode: Ensure the position mode preference of the selected contract is consistent.
2. Total: Enter the total amount of the order, or use the percentage indicator bar to quickly set the order amount and the proportion of the available margin in the account.
3. Order Splitting Methods: You can set parameters for sub-orders based on two types: amount per order and number of orders. After selecting a splitting method, the system will calculate the value for the other method based on the user-defined parameters. The default splitting method is amount per order.
- Amount Per Order: The amount of each order when executing the Iceberg Pro strategy. After placing the order, the number of sub-orders will be determined based on the user-defined amount per order.
- Number of Orders: The total number of sub-orders to be split when executing the Iceberg Pro strategy. After placing the order, the amount per order will be determined based on the user-defined number of sub-orders.
4. Preference: You can choose your preferred order type when placing orders. This includes three modes: Faster Execution, Better Price, and Fixed Price, with Faster Execution as the default.
- Faster Execution: Each order is placed at the best bid or ask price, and the order price will be dynamically adjusted with market price changes to ensure faster execution.
- Better Price: Each order is placed at a fixed distance from the best bid or ask price. When the market price deviates from the order price by a certain distance, the order price will be adjusted to ensure a better execution price.
The formula for calculating the order price is as follows:
| Set by Var. | Set by Ratio |
|---|---|
| Bid Price = Last Highest Bid Price (Buy 1) - Var. | Bid Price = Last Highest Bid Price (Buy 1) x (1-Ratio) |
| Ask Price = Last Lowest Ask Price (Sell 1) + Var. | Ask Price = Last Lowest Ask Price (Sell 1) x (1+Ratio) |
- Fixed Price: Each sub-order is placed at the price you set.
5. Reduce-Only: It is only applicable for perpetual futures trades in one-way mode. In hedge mode, for exit orders, you can switch to the “Close” tab to create an Iceberg Pro order.
6. Advanced: Tap “Advanced” to set the start conditions and the limit price for the Iceberg Pro order.
Step 3: Double check all the order information you have entered.
2. View / Cancel Orders
After a successful order placement, you can view pending activation or active orders in the “Open Orders” - “Iceberg Pro” on the trading page. Orders that have been fully filled or canceled can be viewed in the “Order History.” You can also check the filled parts in “My Trades.”
To cancel an order, you can tap the “Cancel” button next to the order in the “Open Orders”.
3. Query Historical Order Records
Terminated or canceled Iceberg Pro orders will be displayed in the “Order History”. You can tap the bill icon on the right of “Positions” at the bottom of the trading page to view historical orders. Below is an illustration of the Iceberg Pro order history info:
4. Iceberg Pro Details
Iceberg Pro orders that are pending activation, active or terminated all support viewing detailed information. You can tap Iceberg Pro orders in Open Orders or Order History to access the details page to view order status, parameter information and transaction details.
About Advanced Options
Activation Price
When buying: if the market’s last price is less than or equal to the activation price, the Iceberg Pro order will be activated.
When selling: if the market’s last price is greater than or equal to the activation price, the Iceberg Pro order will be activated.
Limit Price for Iceberg Pro
Ensure that all sub-orders are executed within this limit price range and cannot be executed at a price exceeding the specified threshold.
Example
1. Set the basic parameters only.
User A wants to buy 1 BTC using the Iceberg Pro strategy, setting the number of orders to 10 and choosing Faster Execution as the order preference. Once successfully submitted, the system will place a limit order for 0.1 BTC at the current highest bid price. After that order is fully executed, the system will continue to place limit buy orders for 0.1 BTC at the latest highest buy price until the total amount reaches 1 BTC or the user manually cancels the Iceberg Pro strategy.
2. Set the advanced options.
User A continues to use the Iceberg Pro strategy to place a buy order with the following conditions:
- Total: 1 BTC
- Order Splitting Method: Number of orders, and set it to 10
- Order Preference: Better price, with a price variance of 20
- Activation Price: 30,320 USDT
- Limit Price for Iceberg Pro: 50,000 USDT
Currently, the last price of BTC is 30,311 USDT, which is lower than 30,320 USDT, so the order is directly activated.
Each order’s price will be set at the current highest bid price minus the price variance, with the amount per order of 0.1 BTC. The process is as follows:
First Limit Order: 0.1 BTC, if the highest bid price is 30,310, the order price will be 30,310 - 20 = 30,290 USDT. The system places a limit buy order at 30,290 USDT for 0.1 BTC. Once this order is fully filled, the system will place the second sub-order.
Second Limit Order: 0.1 BTC, with the price set at the last highest bid price - 20, timed to the execution of the first limit order.
…
Tenth Limit Order: 0.1 BTC, with the price set at the last highest bid price - 20, timed to the execution of the ninth limit order. Once the tenth limit order is fully filld, the Iceberg Pro strategy terminates.
FAQ
1. What is the difference between “Iceberg Pro” and “Iceberg” of limit orders?
In the Iceberg Pro strategy, the main goal is to split large orders to achieve better prices. You can customize settings such as price variance or slippage ratio, trigger price, and amount per order, allowing you to easily and quickly configure according to your needs to execute trades at prices better than the market. The primary purpose of iceberg with limit orders is to hide the real trading amount; after setting the display amount, the remaining amount will be hidden in the order book, obscuring your trading intentions.
2. What is the difference between “Iceberg Pro” and “TWAP (Time-Weighted Average Price)”, and which one should I choose?
Differences
Trading Purpose: Iceberg Pro aims for better prices and lower costs, so the fill prices of small orders are generally better than the best market price on the order book. In contrast, TWAP focuses on quickly splitting large orders, resulting in fill prices for small orders that are worse than the best market price on the order book.
Price Settings: Iceberg Pro sets order prices based on slippage or ratios from the best market price of the order book, while TWAP sets prices based on slippage or ratios from the best market price of counterparty orders.
Small Order Execution Method: Iceberg Pro only executes the next small order after the previous one is fully filled, whereas TWAP executes based on time intervals, canceling regardless of whether the previous order was fully filled.
How to Choose
Choosing between Iceberg Pro and TWAP depends on your goals and market strategy. If you want to achieve better prices at a relatively slower pace, Iceberg Pro may be more suitable. If you’re seeking an average cost over a period while prioritizing execution speed, TWAP may be the better option. In practice, you can also combine both strategies based on your trading strategy and market conditions.
Gate reserves the final right to interpret the product.
For further assistance, please visit the Gate official support page or contact our customer support team.
