Trading & Market Structure

Dark Pool

Definition

What is Dark Pool?

A private trading venue that does not display its full order book publicly before execution.

Example in practice

An institution uses a dark pool to reduce information leakage from a large order.

Keep learning

The highest price a buyer is currently willing to pay for a security.

The lowest price a seller is currently willing to accept for a security.

The difference between the best available buying and selling prices.

An instruction to buy or sell immediately at the best available prices.

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