What is the purpose of dark pools in stock trading— what is it all about?
Share
Sign Up to our social questions and Answers Engine to ask questions, answer people's questions, and connect with other people.
Lost your password? Please enter your email address. You will receive a link and will create a new password via email.
Please briefly explain why you feel this question should be reported.
Please briefly explain why you feel this answer should be reported.
Please briefly explain why you feel this user should be reported.
What is the purpose of dark pools in stock trading— what is it all about?
Dark Pool trading enables buyers and sellers to interact outside of an ordinary exchange environment. An exchange where buyers and sellers can only list their orders without seeing who is taking the other side. Imagine you try and buy 100 shares on a dark pool. You enter in your price you want to buy at and it goes. The dark pool has other buy and sell orders in it, however they are invincible to everyone.
Dark pools are private trading exchanges that are not available to outside retail investors. The main reason for the existence of dark pools is to facilitate block trading between big institutional investors. The Dark pool indicator provides a way of peeking into the secret exchanges. Dark Pools are so important to retail traders is that the liquidity they are drawing and their activity often precedes a huge sudden momentum action in individual stocks. Individual stock traders can benefit greatly from being able to identify their Dark Pool Buy Zones. The Dark Pools use special, complex, automated orders that trigger when a certain set of criteria is present for each stock. This criteria is based on the stock, market conditions, and activity in the stock chart.