Dark Pools in Trading

Dark pools are private exchanges or forums for trading securities that are not accessible by the investing public. They are used to trade large blocks of securities away from the public eye, providing liquidity and minimizing market impact.

How Dark Pools Work

Dark pools allow institutional investors to trade without revealing their intentions to the public. This helps in:

Reducing market impact
Providing liquidity
Minimizing price slippage

V = P * Q

Where:

V = Volume traded
P = Price per share
Q = Quantity of shares