When trading large blocks of shares, particularly in illiquid stocks, it helps to hide the number of shares in your order. You can do this with what is called an iceberg order. The video below shows how they work in Interactive Brokers Traders’ Workstation as I try to cover a large short position in an illiquid stock. You can learn more about all complex order types at IB by visiting their order type page.
11 thoughts on “Hide your order size by using iceberg orders at Interactive Brokers”
Hey Reaper, I just got IB, does IB charge 100.00 to 50.00 when I cancel an order? I read this on their site, I’ve cancelled orders before but I don’t see the charge in my account.
That’s very good advice
OT: Reaper what’s the deal with Left? Why the domain switch to .net? He hasn’t put a new report in awhile, he’s been on a cold streak.
My bet is he was just a moron and didn’t renew his domain name in time and a squatter got it.
Reaper, do you know anything about these cancel order fee’s?
Yes and I will answer that question next week in my Saturday morning Q&A post.
Why not use the “Hidden” order type?
Good question. I guess they are both options. Iceberg orders would be better to the extent that you would get preferential fills on the shown quantity. If there are 800 shares other than mine bid at 5.60 and I bid first with a hidden order, my order will fill last. If I am showing 400 on an iceberg order, my 400 shown will get filled first. Shown orders are always filled before hidden orders.
Thought you might be interested in adding the “Trader Dashboard” function to your TWS since I saw you had the SPY on your tab. Look into it.
Yeah thanks, but I’ve tried and I just don’t like it for some reason. So SPY stays!
They really display only 100 shares? I just tried a 300 share bid on EDGA and it showed 300 hundred shares.
I saw it on level one as I created a higher best bid.