Dark Pools & Alternative Trading
Discover the hidden markets where institutions trade billions daily
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High-Frequency Trading
Trading in the Shadows
While most people imagine trading happening on brightly lit exchange floors, 30-40% of US equity volume executes in darkness. Dark pools and alternative trading systems allow institutions to trade massive blocks without revealing intentions—protecting them from predatory traders who'd front-run their orders.
What Are Dark Pools?
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Private Trading Venues
Electronic markets where buy/sell orders aren't visible to public
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Institutional Focus
Designed for large block trades (10,000+ shares)
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Hidden Liquidity
Orders match anonymously without pre-trade transparency
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Post-Trade Reporting
Trades reported after execution, often with delays
Market Share
Public Exchanges58%
Dark Pools & ATS32%
OTC / Other10%
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Why It Matters
Dark pools reshape price discovery, affect market transparency, and create advantages for those with access. Understanding them reveals how institutional trading really works—and why retail investors often get different prices.