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What is a Dark pool of liquidity?

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Anonymous

16y ago
Updated: 8/17/2019

A slang term that refers to the trading volume created from institutional orders, which are unavailable to the public. The bulk of dark pool liquidity is represented by block trades facilitated away from the central exchanges

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Wiki User

16y ago

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What is a dark pool?

From investopedia: "A slang term that refers to the trading volume created from institutional orders, which are unavailable to the public. The bulk of dark pool liquidity is represented by block trades facilitated away from the central exchanges". Basically, it is trading volume by institutional (big) players in the market, and it is not tracked (for public disclosure).


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An exchange pool is a shared liquidity pool where multiple parties can contribute assets to facilitate trading or swapping between different tokens or cryptocurrencies. By pooling resources, participants can access deeper liquidity for their trades, which can lead to better prices and reduced slippage. Exchange pools are commonly used in decentralized exchanges (DEXs) to enhance trading efficiency.


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