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Dark pool

A private trading venue where orders are not shown to the public before they execute.

Market Structure & FlowIntermediate

Definition

Dark pools, formally alternative trading systems, let institutions trade large positions without revealing their intent. Trades are reported to the public tape after they happen, so dark pool prints show up with a delay.

How it is used

Traders watch unusually large dark pool prints as a clue to institutional interest.

Watch out for

A print shows a trade happened, not whether the buyer or the seller started it. Dark pool volume alone does not indicate direction.

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