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Can someone explain the concept of block trading?

» General Trading
  • Block trading refers to the buying or selling of large quantities of securities, typically more than the public exchange might handle at one time.
  • These trades are usually conducted through an intermediary known as a blockhouse to minimize the impact on the market price.
  • Block trades are common among institutional investors as they negotiate prices that are not typically available to the public market.

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Can someone explain the concept of block trading?

Sure, I get that sometimes big players wanna move massive amounts of stocks without causing a major fuss in the market, right? So they do this thing called block trading. It's like, they trade super large quantities of securities privately, away from the public eye. That way, they avoid screwing up the prices for everyone else. It's kinda like if you were selling a bunch of concert tickets but didn't want to flood the market and drive the price down. Instead, you find someone who wants all your tickets and make a deal on the side. But yo, I'm curious, how do they even keep these trades hush-hush, and what stops the big price impact from happening when the trade hits the market later on?

What measures are in place to ensure transparency and fairness in block trading?

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