EDU Articles

Learn about investing, trading, retirement, banking, personal finance and more.

Ad is loading...
Help CenterFind Your WayBuy/Sell Daily ProductsIntraday ProductsFAQ
Expert's OpinionsWeekly ReportsBest StocksInvestingTradingCryptoArtificial Intelligence
IntroductionMarket AbbreviationsStock Market StatisticsThinking about Your Financial FutureSearch for AdvisorsFinancial CalculatorsFinancial MediaFederal Agencies and Programs
Investment PortfoliosModern Portfolio TheoriesInvestment StrategyPractical Portfolio Management InfoDiversificationRatingsActivities AbroadTrading Markets
Investment Terminology and InstrumentsBasicsInvestment TerminologyTrading 1 on 1BondsMutual FundsExchange Traded Funds (ETF)StocksAnnuities
Technical Analysis and TradingAnalysis BasicsTechnical IndicatorsTrading ModelsPatternsTrading OptionsTrading ForexTrading CommoditiesSpeculative Investments
Cryptocurrencies and BlockchainBlockchainBitcoinEthereumLitecoinRippleTaxes and Regulation
RetirementSocial Security BenefitsLong-Term Care InsuranceGeneral Retirement InfoHealth InsuranceMedicare and MedicaidLife InsuranceWills and Trusts
Retirement Accounts401(k) and 403(b) PlansIndividual Retirement Accounts (IRA)SEP and SIMPLE IRAsKeogh PlansMoney Purchase/Profit Sharing PlansSelf-Employed 401(k)s and 457sPension Plan RulesCash-Balance PlansThrift Savings Plans and 529 Plans and ESA
Personal FinancePersonal BankingPersonal DebtHome RelatedTax FormsSmall BusinessIncomeInvestmentsIRS Rules and PublicationsPersonal LifeMortgage
Corporate BasicsBasicsCorporate StructureCorporate FundamentalsCorporate DebtRisksEconomicsCorporate AccountingDividendsEarnings

What are “Dark Pools” of Money?

Institutional investors can purchase and sell big blocks of securities on secret electronic trading platforms known as "dark pools" without disclosing the specifics of their transactions to the general public. Institutional investors can trade securities on these trading platforms, also referred to as Electronic Trading Crossing Networks (ECNs), with more privacy and confidentiality outside of the open markets.

Dark pools came into existence in the 1990s as institutional investors started looking for more effective ways to carry out sizable deals without causing the market to move. Executing large orders in the public markets can be challenging and expensive because these investors frequently trade in large numbers and have a substantial impact on market prices.

Dark pools provide a remedy for this issue by allowing institutional investors to trade directly with one another, without revealing the details of their transactions to the public. This can help to reduce market impact and transaction costs, and can provide a more efficient way to execute large trades.

Some of the largest dark pools include Liquidnet, Pipeline, and SIGMA X, among others. These networks are used by financial institutions around the world, and are estimated to account for a significant portion of the total trading volume in many markets.

While dark pools can offer benefits to institutional investors, they have also been subject to criticism and scrutiny. One concern is that dark pools can create a lack of transparency in the market, as trades are not publicly reported and can be difficult to track. This can make it harder for regulators to monitor market activity and detect potential market manipulation or insider trading.

There have also been concerns that dark pools can create an uneven playing field for investors, as institutional investors may have access to information and trading opportunities that are not available to the general public. This can create an unfair advantage for these investors, and may make it more difficult for smaller investors to compete in the market.

In recent years, regulators around the world have been scrutinizing the activities of dark pools and working to increase transparency and oversight. In the United States, for example, the Securities and Exchange Commission (SEC) has implemented new rules requiring dark pools to disclose more information about their operations and provide more transparency to investors.

Despite these concerns, dark pools are likely to remain an important part of the financial landscape for institutional investors. As long as there is a need for large block trades and a desire for greater confidentiality and anonymity, dark pools are likely to continue to play a role in the global financial markets.

Dark pools of money are private electronic trading venues where institutional investors can buy and sell large blocks of securities without disclosing details of their transactions to the public. While these platforms can offer benefits to institutional investors, they have also been subject to criticism and scrutiny due to concerns about market transparency and fairness. Despite these concerns, dark pools are likely to remain an important part of the financial landscape for institutional investors, and regulators will continue to work to increase transparency and oversight in this area.

Tickeron's Offerings

The fundamental premise of technical analysis lies in identifying recurring price patterns and trends, which can then be used to forecast the course of upcoming market trends. Our journey commenced with the development of AI-based Engines, such as the Pattern Search Engine, Real-Time Patterns, and the Trend Prediction Engine, which empower us to conduct a comprehensive analysis of market trends. We have delved into nearly all established methodologies, including price patterns, trend indicators, oscillators, and many more, by leveraging neural networks and deep historical backtests. As a consequence, we've been able to accumulate a suite of trading algorithms that collaboratively allow our AI Robots to effectively pinpoint pivotal moments of shifts in market trends.

What is After-Hours Trading?
What was the Subprime Meltdown?

Disclaimers and Limitations

Ad is loading...