MarketMatt Channel commented on a stock · Oct 21, 2023 21:02

The dark pool - let me explain

Let me explain in my terms.

Dark pool : Please understand that over 50% of trades in today’s market happen in the dark pool.

Let me simplify. You have a house you want to sell, you don’t want to list it on the open market. So it becomes an off market listing.

The same is true for the market, I have 1 million shares of Tesla >I’m hypothetically looking to sell. If I sell it on the open market. There’s a good chance the stock price will fall 10%. So I sell my shares in the dark pool.

The same is true for buyers, say I wanted to take a large position in DIS OR NETFLIX >, hedge fund, Holding Company, big money, they don’t want their position to be known, so they purchase in the dark pool

10 years ago only 10 to 20% of trading happened in the dark pool. Now over 50% occurs there.