What is Dark Pool?
$AMC Entertainment(AMC.US$
What is Dark Pool? Is it illegal? Read this for better understanding. Dark Pool is not something like dark web or Hidden trading Industry. All from Insurance, Large Funds Traders, Banks, Institutions use a method where they don't Buy and Sell like retail traders.
For example when you buying let say 10k shares now what happen as a retail when you sell them its not that all shares been sold at the price you are selling but order filled as per Buying orders means sellers meets buyers and then only order gets filled, So let say if you are selling security at $30 and around 10K shares means it gets filled from $30 to $26 or $25 a different price per lots.
What is Dark Pool? Is it illegal? Read this for better understanding. Dark Pool is not something like dark web or Hidden trading Industry. All from Insurance, Large Funds Traders, Banks, Institutions use a method where they don't Buy and Sell like retail traders.
For example when you buying let say 10k shares now what happen as a retail when you sell them its not that all shares been sold at the price you are selling but order filled as per Buying orders means sellers meets buyers and then only order gets filled, So let say if you are selling security at $30 and around 10K shares means it gets filled from $30 to $26 or $25 a different price per lots.
Now if institutional traders with hundreds of thousands of stocks if going to sell their holding as per retail way they get a big time loss, so what they do? they use non traditional way and backend Buy and Sell where let say if current price is 30 then they offer another large buyer these stocks as a wholesale at $2 less means sell entire stock lots 2dollar less means at $28, this largely you see during after hrs or pre-market when price gap up or gap down.
so many YouTubers have tried to show dark pool as something illegal which is not.
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我问天 : look at the after market price!!!
STOCKS SPARTAN OP 我问天 : This is what I have said in post.
我问天 STOCKS SPARTAN OP :![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
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Tony Stark : It’s not illegal , BUT it is when Most buy orders are being processed Together in the darkpool to avoid price increases. YET all sell orders are In the lit exchange.
Also NO STOCK should have 50-60 % of its Volume being traded in the darkpool for 8+
Months .
我问天 : YAY, IT WILL BE A GREEN FRIDAY!!!!!!!!
STOCKS SPARTAN OP Tony Stark : this is normal practice, Its higher just recently in last 1 year, If you signup as institution with volume then you too get same kinda privileges
APE Dave Tony Stark : i think you have a good understanding about dark pool. The stock market is suppose to be a free where price is determined by actual buying and selling.
If trades are directed through dark pool, it does not reflect the current state of price as the demand and supply is not truly reflected.
And also the dark pool system is badly abused where sellers can simply signed off 'IOU' for stocks that are sold, thereby creating synthetic shares.
Badly badly regulated and funds take advantage of that.... unless there is a way to account for such synthetic shares, we will be at a losing end. We can keep buying, but they can keep churning out synthetics.
STOCKS SPARTAN OP APE Dave : I am agreed with you but as said a large chunk can't be bought and sold a retail way because of there won't be enough Buyers or Seller at the same time and this makes market unstable.
我问天 : So was this practice by manipulators before the Gamma squeeze last June 2021? if yes, how it ended up with a squeeze?
APE Dave STOCKS SPARTAN OP : the concept is good, but badly regulated, henceforth being abused. what honestly, what can retail traders like us do.
you keep buying, but brokers channel these trades through dark pool, they keep churning out synthetics through IOU...
till the day they regulate the dark pool, will we see AMC flying to the moon.
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