Module 2 · Liquidity Behavior
Iceberg Orders
Hidden size that refills as it's hit.
In this lesson you'll
- Define an iceberg order
- Recognize the heatmap/tape signature
- Understand why it needs MBO data to detect
The signature is executed volume far exceeding the visible resting size. The book shows a small order, yet trade after trade prints at that price and the level never runs out — it keeps refreshing. The tell-tale cluster: repeated refills + repeated absorption + price stalling despite heavy directional volume.
Key takeaways
- An iceberg shows a small slice and auto-refills as it's hit, hiding true size.
- Signature: executed volume far exceeds the visible resting size; the level won't break.
- Look for refills + absorption + price stalling despite heavy volume.
- True detection needs MBO data; otherwise you only infer it after the fact.
Check your understanding
Pick an answer to reveal instant feedback. Answer every question to complete the lesson.
Why that's off: An iceberg hides size — the visible part is small, not huge.
Why that's off: Icebergs absorb and hold price, they don't gap it.
Why that's off: Heavy volume trades against it — the opposite of zero.
An iceberg shows only a small slice but refills; so far more trades execute at the price than the visible size suggests, and the level holds despite heavy volume.
Why that's off: Candlesticks show none of the order book.
Why that's off: The close says nothing about hidden refills.
Why that's off: It specifically needs high-quality order-level data.
Detecting hidden refills needs order-level (MBO) data. With aggregated depth you can only infer an iceberg after the fact (volume ≫ visible size).
Educational content only. Nothing here is financial or trading advice. Order-flow and options patterns shift probabilities; they never guarantee outcomes.