Dark Pools Explained in 60 seconds. #Shorts

If a hedge fund wants to buy 40 million shares of a stock, they have a problem. Do it on the open market, and the price runs away from them before they're finished. Everyone sees the buying, and they end up paying more for every share. So they don't. Instead, they use a dark pool, a private venue where large institutions trade big size without showing their hand to the public market. The exchanges you know, the NYSE, the NASDAQ, are lit. Every trade is visible in real time. Dark pools are different. The trades stay hidden while they execute. But here's the key: they don't stay hidden forever. Every dark pool trade gets reported afterward. So if you know where to look, you can see where serious money was positioning long before the rest of the market catches on. That's the footprint institutions leave behind, and it's something most traders never even know exists.