Block Trade

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Dictionary Says

Definition of 'Block Trade'

An order/trade submitted for sale or purchase of a large quantity of securities. Also known as "Block Order".
Investopedia Says

Investopedia explains 'Block Trade'

In general, 10,000 shares of stock (not including penny stocks) or $200,000 worth of bonds would be considered a block trade.

Related Definitions

  • Auction Market

    A market in which buyers enter competitive bids and sellers enter competitive offers at the same time. The price a stock is traded represents the highest price that a buyer is willing to ...
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  • Block House

    A brokerage firm with the primary focus of locating potential buyers and sellers of large trades. A block house typically deals with institutional clients rather than individual ...
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  • Iceberg Order

    A large single order that has been divided into smaller lots, usually by the use of an automated program, for the purpose of hiding the actual order quantity.
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    • Blockage Discount

      The difference between the market value of a security and its sale price when transacted under a block trade. Each blockage discount is negotiated by the involved institutional ...
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    • Block Order

      A signficant order placed for sale or purchase of a large number of securities. Block orders are often used by institutional investors.Also known as a "Block Trade".
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    • Block Trading Facility - BTF

      A wholesale trading facility that allows traders to buy or sell large numbers of securities bilaterally outside of the public market. Because trades conducted in a block trading facility ...
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    • Elephants

      Slang for large institutions that have the funds to make high volumes trades. Due to the large volumes of stock that elephants deal in, any investment decisions that they make will have ...
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    • Blind Bid

      An offer to purchase a bundle of securities without knowing the exact securities being purchased. A blind bid is risky in that the investor is unaware of the composition of the ...
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    • Round Lot

      A group of 100 shares of a stock, or any group of shares that can be evenly divided by 100, such as 500, 2,600 or 14,300. A round lot has historically been the smallest order that can be ...
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    • Expunge

      An action that destroys any record of an AUTEX indication. Expunging an indication will permanently remove an trace of a trader's advertisement for a block order.
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