Definition of Dark Pool

Financial Terms Beginning with D

What is a Dark Pool

A dark pool is a private, lightly regulated alternative trading system (ATS). It is a popular trading venue for large institutional investors and investment banks who want to keep their trade intentions secret and less transparent. The purchase and sales information on the order size, as well as the trading price, are not revealed to other participants.

A dark pool is also known as a crossing network.

Glossary of Terms and Phrases

A financial dictionary or glossary is an essential tool to better understand the meaning of a specialized term or phrase. It would obviously make life much easier if everyone spoke the same language and used the same financial terms and phrases but that is not realistic.

We learn new languages to communicate with each other, transact business globally and to appreciate other cultures. Global finance is a specialized language that if understood and mastered, it will provide benefits that help to decrease risk and improve investment returns. Financial literacy is the foundation of developing good investment strategies and sound decision making.

Related Investment Terms

Electronic Trading System

Transparency

Xetra

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