How to use iceberg orders on Bybit

Placing a large order sounds simple, but it often creates problems. When a big buy or sell order appears in the order book, it can move prices before the trade is completed. Other traders may react, prices can shift, and execution can worsen.

Iceberg orders help reduce this risk. Instead of showing the full order size, they split a large trade into smaller pieces that execute gradually. This keeps your intent less visible and helps you trade closer to the market price. In this guide, you’ll learn what iceberg orders are, when they make sense, and how to place them on Bybit step by step.

Key takeaways

• Iceberg orders split large trades into smaller, hidden orders.

• They help reduce slippage and unwanted price moves.

• You can place them on both spot and derivatives markets on Bybit.

• Execution may pause if prices move outside your set limits.

What is an iceberg order?

An iceberg order lets you trade a large position without showing its full size to the market. Instead of placing one large order, the total amount is split into smaller sub-orders. Only one small portion is visible in the order book at any time, while the remaining size stays hidden.

When the visible sub-order is fully filled, the next one is placed automatically using the same settings. This process continues until the entire order is executed or the strategy is stopped.

On Bybit, iceberg orders are available on both spot and derivatives markets, giving traders a way to manage execution risk while keeping their full trade size discreet.

Why use iceberg orders

Iceberg orders are most useful when a trade is large enough to affect price if it’s placed all at once. By spreading execution over time, traders can reduce market impact and avoid sharp price moves that often lead to slippage.

They also help limit front-running. Since the full order size isn’t visible in the order book, other traders are less likely to trade ahead of you. Iceberg orders are commonly used by large traders, market makers, and disciplined scalpers who want controlled entries or exits without disrupting the market or revealing their full position.

How iceberg orders work on Bybit

When you place an iceberg order on Bybit, the system does not send the full order to the market at once. Instead, the total size is split into smaller sub-orders based on your chosen settings. You can set the size of each visible sub-order or the number of splits.

Only one sub-order is active and visible at any time. Once it is fully filled, the next sub-order is placed automatically using the same rules. This continues until the entire order is executed, the strategy expires, or you stop it manually.

You can also choose different order preferences to balance execution speed and cost. A price limit can be added to pause execution if the market moves beyond a level you are comfortable trading at, helping you stay in control during volatile conditions.

Step-by-step: how to place an iceberg order on Bybit (website)

Step 1: Open the trading page

Log in to Bybit and open the market you want to trade, such as BTCUSDT. Make sure you are on the Trade page and the order panel is visible.

Step 2: Select Iceberg order

In the order type menu, click Conditional and choose Iceberg. The order panel will switch to iceberg mode.



Step 3: Enter total quantity

Input the total quantity you want to buy or sell. This is the full size of your trade, even though it will not appear in the order book all at once.

Step 4: Set split settings

Choose your split method. You can set the quantity per order or define the number of orders. Bybit will automatically split your trade based on this setting.

Step 5: Choose order preference

Select an order preference, such as Chase Limit, to control how each sub-order is priced.



Step 6: Add optional controls

If needed, turn on Price Limit to pause execution if the market moves beyond your chosen level.

Step 7: Confirm the order

Click Buy/Long or Sell/Short and confirm. You can monitor or stop the order from Tools → Iceberg.

Step-by-step: how to place an iceberg order on the Bybit app

Step 1: Open the trading page

Open the Bybit app and tap Trade from the bottom menu. Select the market you want to trade, such as BTCUSDT, to access the trading screen.



Step 2: Select Iceberg order

In the order type section, tap the order type dropdown and choose Iceberg. The order panel will switch to iceberg order mode.

• Total quantity: The full size of your trade. This amount will be split and executed gradually.

• Split settings: Choose either: 



• Order preference:  Select how each sub-order is placed:Chase Limit (taker)

• Price limit (optional): Set a price boundary to pause execution if the market moves outside your acceptable range.

Step 3: Confirm and monitor

Review all details carefully, then click Confirm to place the order.



Step 4: Confirm and manage

Tap Buy/Long or Sell/Short, review the details, and confirm. You can view or terminate active iceberg orders anytime from Tools → Iceberg.

You can view active iceberg orders or order history by going to Tools → Iceberg. 



To stop an iceberg order, open Tools, select the order and click Terminate in the position tab.



Iceberg order example

Imagine a trader wants to buy 5 BTC on the BTCUSDT market without pushing the price higher. Instead of placing a single 5 BTC order, they use an iceberg order.

They set the total quantity to 5 BTC and choose a quantity per order of 0.5 BTC. This splits the trade into 10 sub-orders. Only one 0.5 BTC order appears in the order book at a time.



Each time a sub-order is fully filled, the next one is placed automatically. If a price limit is set, execution pauses if BTC moves beyond that level. This helps prevent buying at worse prices during sudden volatility and keeps execution closer to the intended range.

Advantages and limitations

Iceberg orders offer greater control and discretion, but they are not suitable for every trading situation.

Advantages

Iceberg orders reduce market impact by breaking large trades into smaller, less visible orders. This improves discretion and helps avoid sudden price moves. Gradual execution gives traders more control over how positions are entered or exited. Automation removes the need to manually re-enter orders and keeps execution consistent.

Limitations

Iceberg orders are not designed for instant full fills. Because execution happens in stages, trades may take longer to complete, especially in low-liquidity markets. Orders can pause during fast price moves if a price limit is reached. Correct setup is important, as poor split sizes or preferences can reduce execution quality. Iceberg orders are not supported in demo trading.

Conclusion 

Iceberg orders are most effective when trading sizes large enough to influence price or attract attention in the order book. Setting an appropriate split size and using sensible price limits helps maintain control throughout execution. They are less suitable for traders who need instant fills or very short-term entries. If you are new to iceberg orders, start with smaller trade sizes to understand execution behavior before scaling up.



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