Dark Pools

Dark pools are private trading venues that do not show their orders publicly. They help big investors trade without moving prices. Here is how they work, how much trading happens off-exchange and the debate around them.

Trading without showing your hand

If a pension fund wants to buy 2 million shares, posting that order on a public exchange would push the price up before it finished. A dark pool lets large orders meet without displaying them. Trades are reported to the public tape after they happen, but the orders are hidden beforehand.

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