3/21/2023 0 Comments Dark pool tradingWhat does that mean? It means the trades that were going for $412.0696 were transacted the prior day and were reported the next day. However, you can see in the market those same shares were going for different prices in the public market. For the quantity section, you can see that 251,292 shares were traded for $412.0696. You can see an example of how that looks when reported in the graphic below.Īs you can see in the chart above, there are three areas of focus that traders need to be mindful of: quantity of shares, price, and market. If the trade is placed outside the United States, for example, in London, they have 24 hours to report it once the trade is filled. If the trade was placed in the continental United States, the transaction must be reported within three hours. When an institution places a trade in the dark pool exchange, two rules must be followed once both parties have fulfilled the transaction. Dark pools might be controversial, but it is a regulated trading exchanges authorized by the Securities and Exchange Commission (SEC). I get asked quite often if dark pools are legal. Video Guide – How Does Dark Pool Trading Work? Are Dark Pools Legal? I’ll show some examples shortly the concept can be easier explained visually. In layman’s terms, you could be buying a stock without knowing that there is an institution right above you, selling the price lower. What does this mean? It means that an institution can hide its trade until it’s filled. It allows institutional investors to trade without exposure until after the trade has already been filled. The dark pool is a private exchange for trading securities. In all honesty, they should feel that way. The dark pool exchanges have been quite controversial as it leaves retail traders feeling like they are being manipulated. The increase in attention may have started after the AMC and GameStop shenanigans, as it shed some light on how the markets can be unfair. ![]() As of late, dark pools seem to have been in the eye of the retail trader & public. ![]() The purpose of dark pools was to allow institutions such as pension funds and mutual funds to transact trades with discounted commissions and available liquidity. However, dark pool trading is an incredible and effective trading strategy, but there’s nothing mysterious or taboo about it it’s a lot less dramatic than traders think. But, when dark pools were created, that wasn’t the reputation it wanted to garner. Dark pool trading may sound mysterious, taboo, and pretty awesome to the average trader.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |