What Are Dark Pools?

in crypto •  7 years ago 

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Dark pools are over-the-counter marketplaces for carrying out the trades hidden from the majority of market players. Big investors prefer such platforms to public exchanges because of the ability to invisibly buy or sell assets in large quantities, thereby avoiding having a significant influence on the market and eliminating speculators’ reaction to the deal.

Advantages:
• Little influence of high-volume orders on the market;
• Lower transaction fees.

Disadvantages:
• Prices may not match those of the public market;
• High risk of inefficiency and abuse.

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