<p>An <strong>Iceberg Order</strong> is a type of large order broken down into smaller parts to be executed at different times, aiming to minimize the impact on the market. It's a strategy used by traders to enter or exit positions without significantly affecting the price of the underlying asset.</p>

<h2>How It Works</h2>
<p>Here's how an Iceberg Order works:</p>
<ul>
  <li>Traders break down a large order into smaller, equal-sized parts, known as child orders.</li>
  <li>Each child order is then placed at regular intervals over a specified period.</li>
  <li>The intervals and the number of child orders depend on the trader's strategy and the liquidity of the market.</li>
  <li>Once a child order is executed, the next one is triggered, and so on, until the entire Iceberg Order is filled.</li>
</ul>
<p>For instance, on <strong>MetaTrader 5</strong>, traders can set up an Iceberg Order by using the 'Pending Orders' feature. They can specify the total volume, the volume for each child order, and the interval between them.</p>

<h2>Why It Matters for Traders</h2>
<p>Iceberg Orders matter for traders for several reasons:</p>
<ul>
  <li><strong>Market Impact:</strong> By breaking down a large order into smaller parts, traders can reduce the market impact of their trades. This can help prevent slippage and ensure a more accurate execution price.</li>
  <li><strong>Risk Management:</strong> Iceberg Orders allow traders to manage their risk more effectively. If the market moves against them, they can cancel the remaining child orders to limit their losses.</li>
  <li><strong>Flexibility:</strong> Iceberg Orders provide traders with flexibility. They can adjust the size and frequency of the child orders based on market conditions.</li>
</ul>

<h2>Example</h2>
<p>Let's say a trader wants to buy 100,000 units of EUR/USD using an Iceberg Order. They decide to break this down into 10 child orders of 10,000 units each, with a 5-minute interval between them.</p>
<p>Here's how the order would be executed:</p>
<table>
  <tr>
    <th>Time</th>
    <th>Child Order</th>
  </tr>
  <tr>
    <td>00:00</td>
    <td>Buy 10,000 EUR/USD</td>
  </tr>
  <tr>
    <td>00:05</td>
    <td>Buy 10,000 EUR/USD</td>
  </tr>
  <tr>
    <td>...</td>
    <td>...</td>
  </tr>
  <tr>
    <td>00:45</td>
    <td>Buy 10,000 EUR/USD</td>
  </tr>
</table>

<h2>Key Takeaways</h2>
<ul>
  <li>An Iceberg Order is a large order broken down into smaller parts to minimize market impact.</li>
  <li>Traders can use Iceberg Orders to reduce slippage, manage risk, and gain flexibility in their trading strategy.</li>
  <li>Iceberg Orders can be set up using the 'Pending Orders' feature on platforms like <strong>MetaTrader 5</strong>.</li>
</ul>