Introducing Iceberg Orders: Now slice and execute large orders on Dhan

Product Announcements 🔈
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Hello Super Traders,

As a product & technology focussed platform, all of us at Dhan are on a journey to bring an incredible trading & investing experience to you. With that, we start this month of August with a key feature for both - investors and traders on Dhan.

Last week we introduced Trailing Stop-loss: Traders’ best friend and now we are here with another amazing feature - Iceberg Order, starting with the Dhan App and soon will be available on Options Trader App, and on Dhan Web.

We know you are waiting for it, cause we told some of our users about this on our community and social media channels. So you do get sneak previews about what Dhan is building when you follow us on our communities on Dhan, Twitter and Telegram. :slight_smile:

Iceberg Order
Iceberg Order1920×1080 118 KB

Before we go to use the case of Iceberg Order let’s understand what it is.

What is an Iceberg Order?
An Iceberg Order is a large order which is divided into smaller parts so it gets executed one after the other in parts instead of a single large order. Just like an Iceberg, only a small quantity is disclosed that is visible on the Stock Exchanges in the market depth.

The term “iceberg” comes from the fact that the visible lots are just the “tip of the iceberg”
Just like how one can see only the tip of the Iceberg and not it completely, same goes for the Iceberg order.

How do Iceberg Orders work?
When a large order is placed, it is divided into smaller orders, and the first order of the divided (or sliced) orders will be placed first on the exchange. Once the Order is executed the remaining orders are placed one by one until the entire order is executed.

Let’s understand with an example:

Assume I want to buy 30,000 quantities of Tata Motors, and I don’t want others to know about it. For this, I can slice my order into 6 legs. That is 5000 qty at a single time. Whereas the exchange will show only 5000 qty to others. This way, every subsequent order from 30,000 will be executed only once the previous batch of 5000 quantity is executed.

How to use Iceberg on Dhan

  1. Select Buy / Sell
  2. Enter Quantity and the Price
  3. Select Market or Limit
  4. Enter the Number of Legs and click on Buy or Sell. The maximum number of legs per Iceberg is 10

Iceberg on phone
Iceberg on phone1836×2851 357 KB
Iceberg on web
Iceberg on web2918×2267 486 KB

Note:
For Equity: Quantity must be 100 or the order value must exceed 25,000 in value.
For FnO: Minimum 5 Lots

Please note that brokerage for Iceberg Order (means all sliced orders) will be as per Dhan’s Pricing, mentioned here on Pricing & Brokerage Charges | Dhan and also mentioned in the post, every Iceberg order is sliced in multiple orders / transactions as specified by you.

This awesome feature is now available on all the platforms: Dhan App, and will be on Options Trader App & Web.

We keep bringing such amazing features for you. Do let us know your feedback.

Naman
-Product @ Dhan

Disclaimer : The Iceberg order type is not mandated by the exchange and is offered by Dhan at its sole discretion. Dhan reserves the right to modify or discontinue this order type at any time, with or without prior notice to its clients. Dhan disclaims any liability for any loss or damage arising from the failure or malfunction of this order type.

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Awesome Dhan. Appreciate your efforts very much.

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:+1: great going dhan.
Please bring mutual fund also ASAP

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hey,

  1. In the example given, will brokerage be charged for 6 orders (30000/5000) or only one order?

  2. Is this similar to “Disclose Quantity” option that Zerodha has ?

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Hi @hemanthchandra62 ,

Welcome to the Dhan community :smiley:

  1. Since it goes to the exchange as 6 orders, we count it as 6 different orders and the brokerage is calculated accordingly.

  2. Disclosed quantity functionality, extended to all brokers by exchange, is applicable only on Equity segment. Dhan also has disclosed only qty feature. Disc Qty goes as a single order whereas Iceberg works in slicing manner. The primary use case of Iceberg comes into the picture when you want to execute quantity more than the freeze limit.

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Thank you @RahulDeshpande

A suggestion to mention in the main blog that the multiple orders will be placed and brokerage will be charged accordingly.
Else users might be shocked when they face this after placing the order.

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Valid point @hemanthchandra62. We have updated the original post to reflect the same.

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@Naman @PravinJ can we use iceberg to exit/square-off current position?

Let’s say, I used iceberg to place buy order of 15000 quantity nifty options. Inorder to square-off the entire 15000 quantity can I use iceberg to place sell order?

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@PravinJ @Naman This feature is revolutionary for all traders.
Good Keep it up guys.

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Thank you @nmw for the kind words

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Yes, @pratik01 technically you can - on positions you will also see you open positions. Please ensure you square-off correctly and don’t miss out. Iceberg order is just slicing the order, and it essentially is simply a limit or market order.

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Great @PravinJ thanks for sharing.

Maybe, if possible please make one video on iceberg order to show both buying and selling process for educational purposes🙏

Thanks!

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Hi @pratik01, we have a introductory video for Iceberg orders on Dhan here: What is Iceberg Order? | How to Place Iceberg Order - Iceberg Order Explained | Dhan - YouTube

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Hi @PravinJ one question. Once iceberg is successfully executed say of 10 legs (total 18000 nifty quantity). Will my positions page have 10 different orders? OR all 18000 quantity merged into a single position?

(Hence, i requested to make an educational video for both BUY as well as ‘SELL’ side for the same stock. Our current video demo shows only BUY side trade)

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Hi @pratik01

Our videos are introduction to features that we are building and many users will use them differently. Hence we do not want to get into suggestive modes, its bit thin line about explaining a feature and then asking users to use in a particular way… just short of being a recommendation, which we do not want to do. We are here to answer you questions :slight_smile:

On positions - please note that broking transaction systems and even exchanges, know only one thing - order scrip and type of order (normal or intraday). You can create as many orders as you would like by any order type - market, limit, trigger or iceberg - as long as it is intraday orders, all of them will be grouped as a single position. Same for normal orders. Hope this clarifies.

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Thanks for this very very big update.
When will be you are adding this feature on dhan’s tradingview platform ??

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At this moment, we are working to bring Iceberg option on Dhan web, and then Trailing Stop Loss as well to Web.

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Update on Iceberg Orders:

We have further enhanced Iceberg Orders on Dhan, read full-post on same here: Updated: Iceberg Orders now get even Better Experience on Dhan

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I’m also eagerly waiting for it.

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Had an incident today wherein I placed a bracket order for finNifty for barely 600 quantity , way way lesser than its freeze limit and there were about 16 stoploss and target orders created!!! Absolutely ridiculous like 16 individual sell order created !!! It’s so hard for modify each SL and Target order … imagine having to change 16 order values for selling your position as per market changes and I call the Custoner care and they say the orders where sliced with tiny quantity like 40, 80 units etc … but couldn’t fully explain how! The slicing / iceberg should kick in only when the freeze limit is reached or more … why would you slice such small orders making it so difficult to manage - I landed with a huge loss and even if it would be sliced the app should atkeast warn you while placing an order that this will sliced or inform you somewhere !! I can’t find any such info here or web, plz tell me this !!

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