Interpretation of Contract Type (2): Iceberg Commission
GAEA Headquarters — Dear readers, it’s a pleasure that we meet again. This article brings you an interesting topic on the Iceberg commission!
The reason why it this topic is important is because it is aimed at a huge problem in the transaction — cost of the impact. Many friends, whether they are playing the shares or stocks, may have limited funds. So, they have not been exposed to this problem. However, imagine a situation that you are a fund manager of a large organization, holding hundreds of millions of dollars…
So, supposed that after thoroughly researching a company, you finally get rid of all the hardships, and you are determined to buy a lot of stocks. Suddenly, a problem arises: you have to buy too many amount of stocks! We know that the market is profit-seeking, but imagine what a terrible picture will appear if you have a huge amount of money to buy a market.
That’s right, the price will be skyrocketing! In order to additionally cope with the cost of this soaring price, is the impact cost. How about that? Do you suddenly feel lot more capable? If you haven’t already, please fill my mind as I have 10,000 lots of Maotai stock in my hand… and it will rise by a dozen Yuan every day…
Some friends are more realistic, knowing that they will not have such amount of funds in a short term, so they do not care about the iceberg commissions. However, everyone else have to consider these two things:
- The poor depth of having too many currency…. Do you want to sell the currency in your hand to cash in, for the pains of USDT？
2. Let’s assume that you have participated in an ICO, or you have taken a tens of thousands of dollars to buy millions of dollars when some currency are extremely cheap. Now it has skyrocketed, you want to be out, but how do you plan to the millions of currency that are all hanging around…
At this moment, your close comrades — the iceberg commission will reveal its talents.
What is the Iceberg Commission?
Iceberg commission is a way of hiding the commission. The so-called hidden commission means that the limit order entrusted by the user is not seen by the market. Thus, their intention can be concealed and this function is applicable to users with large transaction volume.
Specifically for the iceberg commission, if the user wants to trade 10,000 pieces of contracts after setting the commission limit price, each time the limit price is displayed, 10 contracts are then displayed. Interestingly, after the 10 contracts were sold, the 10 contracts which is at the same price still existed on the board, as if nothing had happened. This continues until the expected 10,000 pieces of contracts were sold. So for an iceberg commission, we can outline one of the simplest models to describe it:
“You need to give the total amount to trade, the limit price to fill, and display the amount of order each time until the transaction is completed. Then, the small list suddenly disappears magically…and at this time, it signifies that all the quantities have been sold.”
The description of this might still be abstract. You may wish to use the small funds to experience GAEA first, to understand its beauty. By the way, the iceberg has an advantage:
“The difficulty of manipulating the price of the currency has been greatly improved! Assume that some unethical trading entities manipulate a series of buy orders or sell orders in a short period of time, causing the market to be in short supply or in panic. However, because of the icebergs commission, their malicious behavior will encounter Waterloo, which has undoubtedly played a very good protective role for our small and medium-sized investors.”
Well, we have come to an end about the introduction of the iceberg commission here. I hope that this information will benefit you in the future.
Learn more about GAEA’s Contract Descriptions:
Interpretation of Contract Type (1): FOK Commission
Interpretation of Contract Type (3): Passive Delegate
Interpretation of Contract Type (4): Reduce-Only Commission
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