Accessing Pools of Liquidity: Dark Pool Trading

Investing can be a very effective way to secure your financial well-being if done with prudence and insight. To be truly effective in the world of investing, knowledge is power and this means knowing all the ins and outs. For those who are not aware of dark pool trading, you are not alone.

This term is sometimes referred to as liquidity trading and it presents a very substantial opportunity for investors. The term dark pool trading is derived from the notion that the general public is not aware of these transactions at all.


In some jurisdictions, it is still required to report dark pool trading to the regulating authorities to prevent money laundering. The agencies conducting these transactions will report at the last possible moment the law requires.

liquidity trading sounds very technical, however, it means at the most fundamental level that what is unusual options activity traded can be bought and sold quite easily. Do not let the term dark induce thoughts of having dealings with a criminal element. This method of investing is highly desirable since it provides a level of investing the common market does not.


When a person deals with the normal market, the price of a stock can vary by a wide margin. The items that impact the price of a stock have nothing to do with sound financial fundamentals.

A market requires two parties: a buyer and a seller. The seller wants to get the highest price possible and the buyer wants the lowest. That is the one common rule of all exchanges. If the thing being sold is highly desired by multiple buyers, then that can drive the prices higher. When many buyers are in the same area and believe the item being sold will appreciate in value, it will entice them to buy at a higher price.


That may seem to an elementary concept in trading, however, in order to appreciate what this type of dark trading offers we need to look at how the conventional market operates. When people hear from someone or from television, radio and E-mail, they get to thinking about a particular stock or investment.

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