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General TradingD
Dark Pool
A Dark Pool is a private, alternative trading system where institutional investors can buy and sell large blocks of securities anonymously, without displaying their orders to the public market. They are used to minimize market impact and prevent adverse price movements that would occur if large orders were visible on public exchanges.
Example
“A hedge fund used a dark pool to sell its 500,000-share position in a tech stock without alerting the public market and causing a sharp price drop.”