Iceberg is an order type available on Zerodha, which slices orders of larger quantity or value into smaller orders, where each small order or leg is sent to the exchange only after the previous order is filled. This helps reduce the impact cost of execution in addition to not revealing large orders in the market depth bids and offers. Iceberg orders are a popular order type among institutional traders, and Zerodha has introduced this to retail traders in India.

When a large order is placed, it is divided into smaller orders or legs, and only the first leg is placed on the exchange at first, revealing only the tip of the iceberg. Once this leg is executed, the next leg of the main order is placed, and so on, until the desired quantity is traded. The number of legs is decided by the customer. Iceberg orders are available for NSE equity, F&O, currency, and BSE equity only. They cant be used in the case of market and SL-M orders on BSE. Iceberg orders and minute validity are not supported during pre-open and post-market sessions.

The advantages of using iceberg orders include reducing the impact cost of execution, not revealing large orders in the market depth bids and offers, and placing larger orders in smaller units. However, it is important to note that when you place an iceberg order, each leg is treated as a different order, and you will be charged the brokerage according to every leg.