What Are Iceberg Orders on Punch?

Punch automatically slices large F&O orders that exceed exchange freeze limits — here's how iceberg orders work.

Written By Archit Sunat

Last updated 27 days ago

Every F&O contract on NSE has a freeze quantity limit — the maximum number of lots you can place in a single order. If you try to place more than this, the exchange rejects your order outright.

Punch solves this with iceberg orders. When your quantity exceeds the freeze limit, Punch automatically splits your order into smaller legs and sends them to the exchange one after another. You don't need to do anything — it happens behind the scenes.

How It Works

From your perspective, an iceberg order looks and feels like a normal order. The only difference is a small note on the order form — something like "sliced into 2 orders" — letting you know the split is happening.

  1. Enter your order as usual — any quantity, even above the freeze limit.

  2. If your quantity exceeds the freeze limit for that contract, Punch automatically splits it into smaller legs (each within the exchange limit).

  3. Each leg is sent to the exchange sequentially — the next leg goes out only after the previous one is fully executed.

  4. Your position appears as a single entry in your Positions tab, not multiple.

Supported Order Types

Iceberg slicing works with all three order types on Punch:

  • Market orders

  • Limit orders

  • Trigger (stop-loss) orders

Iceberg orders are available for F&O contracts only.

Margin, Brokerage, and Charges

  • Margin is calculated on your total quantity — not per leg.

  • Brokerage is charged per leg, since each leg is a separate order sent to the exchange. So if your order is sliced into 3 legs, you pay ₹1 brokerage × 3 = ₹3.

  • Charges (STT, exchange fees, etc.) are calculated on the total quantity as usual.

The order form shows the updated margin, brokerage, and charges based on the number of legs before you confirm.

Managing Iceberg Orders

In your order book and positions, iceberg orders appear as a single order — just like any other trade.

  • Cancel: You can cancel a pending iceberg order. All remaining legs are cancelled.

  • Modify price: You can change the price on a pending or partially filled iceberg order.

  • Modify quantity: You cannot change the quantity once the order is placed. If you need a different quantity, cancel and place a new order.

  • Protection orders: You can add stop loss and take profit on iceberg positions just like any other position.

Quantity Limits

There is an upper cap — if your quantity exceeds 10 times the freeze limit for that contract, the order is not allowed. This is the same restriction as before, based on exchange rules.

What You Don't Need to Worry About

Iceberg orders are designed to be invisible. You won't see separate legs in your order book, separate positions, or multiple notifications. Everything is wrapped into a single order experience — the only hint is the "sliced into X orders" label on the order form.