Gate.io Launches Iceberg Pro, A New Benchmark for Traders and Transaction Privacy

Gate.io
3 min readSep 19, 2023

Dear Gate.io users, we’re delighted to announce the launch of the Iceberg Pro on Gate.io, offering more flexible, privacy-focused, and effective trading methods that minimize market impact.

The Iceberg Pro is used to obscure a trader’s intentions, particularly during large transactions. The concept involves dividing a sizable order into several smaller ones. Each small order amount is multiplied by a random number (between 0.5 and 1), making it difficult for other users to detect from the market depth and trading order book. Consequently, it becomes less obvious to other users within the market depth and order book, hence its moniker, the “Iceberg Pro” This approach is frequently used to manage extensive quantities of buy and sell orders. By fragmenting large orders into an amount per order, it helps regulate market impact, conceal trading intentions, and mitigate substantial fluctuations in market prices.

Example:

  1. Setting Parameters A user wants to purchase BTC below 20,000 USDT without influencing the market and incurring high transaction costs. In this scenario, the user can set the Iceberg Order parameters as follows:
  2. Price Variance: 0.1%
  • Activation Price: 20,000 USDT
  • Amount Per Order: 2 BTC
  • Total Amount: 100 BTC.
  1. Strategy Execution

Once an order is made, the system will automatically initiate batch orders. The order price for each batch will be the latest bid price multiplied by (1 — price deviation of 0.1%), and the quantity will be the user’s input quantity (i.e., 2) multiplied by a random ratio (i.e., between 0.5 and 1). These orders will only be placed once the previous batch order has been fully executed. If the latest market price is higher than the order limit price (i.e., 20,000 USDT), the orders will be temporarily suspended until the latest market price falls below 20,000 USDT again. If the bid price deviates from the order by more than twice the price deviation, the system will automatically cancel and replace the order. Once the strategy reaches its total order volume, it will automatically halt and conclude its process.

Product Highlights:

  1. User Privacy Protection: The Iceberg Pro can effectively safeguard user privacy because only a small portion of orders are revealed on the market, making it difficult for others to understand the true scale and intentions of the trader. The quantity of each small order is multiplied by a random number (0.5, 1), making it less noticeable to other users in the market depth and order book.
  2. More favorable limit order price:
  3. Reduced Market Impact: By breaking down large trades into multiple smaller orders, the Iceberg Pro helps minimize the impact on market prices, preventing significant price fluctuations that can arise from a single large order.
  4. Enhanced Trading Experience and Success: Spreading out trades makes it easier to find matching trading partners, increasing the chances of successful transactions.

The launch of Gate.io’s Iceberg Pro offers enhanced flexibility and privacy for trades, allowing users to better manage their trading environment and experience. We look forward to providing our users with more innovative and superior products. If you have any questions or need assistance, please don’t hesitate to contact our customer support team.

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