What Are Dark Pools?

Dark pools are networks of privately held trading forums, exchanges or markets that provide a platform for the anonymous trading of securities. Dark pools facilitate non-exchange-based trading practices between broker-dealer firms and investors interested in placing orders for the trade of specific securities outside of public scrutiny. (FXCM)



10 Things People Don’t Get About Dark Pools

Dark Pools are electronic Alternative Trading Systems, very similar to stock exchanges where trades can be matched. The big difference of course is that the orders are dark, meaning that the size and price of the orders are not revealed to other participants. This limits the amount of interaction because the participants don’t know when to move their price up or down to find the contra side of their trade or when the contra side may be present in the pool. These pools are mostly used by sophisticated professional traders. (CNBC)


What The Heck Is A Dark Pool And Why Are People Trading In Them?

Last week, dozens of stock prices experienced violent swings because of strange trading activity that had people all over Wall Street scratching their heads. And while the investing public doesn’t know who (what firm) caused these price fluctuations, or why they engaged in the activity that had these stocks going nuts, we do know that, whoever they were, they were trading in a dark pool. Which prompts the question: What the heck is a dark pool and why are people trading in them? (Business Insider)