A dark pool is a secret trading platform for securities, derivatives, and other financial instruments in finance.
Dark pool liquidity is the term for liquidity on these marketplaces.
The majority of dark pool trades are substantial transactions by financial institutions that are made outside of open markets like the NASDAQ and the New York Stock Exchange in order to maintain their confidentiality and escape the attention of the general investing public.
Dark pools were made possible by the fragmentation of computerized trading platforms, and they are often accessed through crossover networks or directly by market players via private contractual agreements.
Dark pools are typically not open to the general public, however in some circumstances, retail traders and investors may have indirect access to them through retail brokers.
Last Updated on 11 hours by pinc