Dark Pools Explained in Detail and answers to questions.In this discussion you will learn more about how Dark Pool Buy Side Institutions actually work and how they buy stocks in a slow steady accumulation mode based on where fundamentals are in relation to the stock price.
Dark Pools are the Alternative Trading System Venues that are unlit, meaning there are no Market Makers. It is a Peer to Peer Transaction mostly or a Buy Side purchasing stock directly from the corporation.
At times Dark Pools may buy on public exchanges but their orders are always delayed being sent to the National Clearing Houses until well after market close for the day.
This ensures that Dark Pools are never front runned by HFTs or others.
This ensures that the Dark Pools are able to buy vast quantities of stock without paying more than their Quantitative Analysis has determined is the range of price below current fundamentals.
Dark Pools seldom move price more than a few pennies and the TWAPs are spread to ping intermittently over many weeks to months. So huge volume spikes are NOT Dark Pools.
Dark Pools tend to accumulate hudrends of thousands to millions of shares of stock over time.
Dark Pools hold the largest quantities for most big name firms.
To trade with the Dark Pools you must understand their "foot print" on the stock chart as it is often hidden among Smaller Funds selling candle patterns.
