Dark Pool Liquidity


DEFINITION of 'Dark Pool Liquidity'

The trading volume created by institutional orders that are unavailable to the public. The bulk of dark pool liquidity is represented by block trades facilitated away from the central exchanges.

Also referred to as the "upstairs market," "dark liquidity" or "dark pool."

BREAKING DOWN 'Dark Pool Liquidity'

The dark pool gets its name because details of these trades are concealed from the public, clouding the transactions like murky water. Some traders that use a strategy based on liquidity feel that dark pool liquidity should be publicized, in order to make trading more "fair" for all parties involved.

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    A buy or sell transaction for an exchange-listed stock that is ...
  6. Block Trade

    An order or trade submitted for sale or purchase of a large quantity ...
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