Lesson 1 of 5 · Dark Pools
What a dark pool is
Size trades where no one can see.
A dark pool is a private venue where institutions trade large blocks without showing orders on the public book. Showing a million-share order on a lit exchange moves price before the fill is complete.
Prints show up after the fact.
Dark pool prints are reported to the consolidated tape after execution, not before. Large prints cluster at prices institutions considered fair value at the time of the trade.
What printed dark pool volume looks like.
Two prints dominate: 1.2M shares at 103.0 and 0.9M shares at 101.5. Those price levels mark where institutions traded the most size. Whether that was buying or selling is not visible here.
This one is an animated diagram in the app. See it in Vero.
Why do institutions use dark pools?
Show the answer
B. To avoid moving price with large orders. A large visible order on a lit exchange would move price against the institution as it filled. Dark pools let size trade without revealing intent in advance.