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Dark Pool

Volume Price Analysis glossary · Volume Price Analysis

Definition

An off-exchange trading venue where large block orders are executed without pre-trade transparency.

Dark Pool in plain English

A dark pool is a private trading venue where big players — like giant funds — can buy or sell huge amounts without the rest of the market seeing the order until after it's done. The reason they use it is simple: if everyone saw a fund trying to sell a million shares, prices would drop before they finished, so they hide the order to get a better deal. It's like a whale quietly selling a warehouse of goods through a back door instead of announcing it in the town square and crashing the price. For a volume analyst, dark pools are a reminder that not all the 'real' buying and selling shows up on the public chart.

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