What happens to dark pool trades at the end of everyday before and after market close
1/31/2024 09:48am
Dark pool trades are private exchanges for trading securities that are not accessible by the investing public. These trades are executed outside of the traditional stock market and are used by institutional investors to buy or sell large blocks of securities without exposure to the public. At the end of each day, before and after the market close, dark pool trades are executed. During this time, the buyer and seller agree on the trade price and volume through a broker. The trades are then settled and reported to the appropriate authorities. The purpose of dark pool trades is to provide a private and secure marketplace for institutional investors to conduct large trades without impacting the public market. By executing trades in the dark pool, investors can avoid the risk of heavy price devaluation that would otherwise occur if the trades were publicly known.