Dark Pools are private trading venues where institutional investors can execute large orders without exposing their intentions to the public market. These platforms offer anonymity, reducing the market impact of sizable trades and potentially achieving better execution prices.<\/p>\n
By concealing order sizes and prices, dark pools prevent significant trades from influencing market prices. This anonymity benefits both buyers and sellers by minimizing slippage and adverse price movements.<\/p>\n
IBKR provides options for controlling dark pool routing through SMART routing settings. Users can choose to either exclude Dark Pools completely as a routing destination or specifically route orders to Dark Pools Only. These preferences can be configured through the Global Configuration menu under Smart Routing settings, where users can select either “Do not route to dark pools” or “SMART Dark Only” in the SMART Stock Routing Algorithms section.<\/p>\n","protected":false},"excerpt":{"rendered":"
Dark Pools are maintained by brokers where institutional traders can rest hidden orders. Those orders are not shown to anyone. When a retail order comes in on the opposite side of the market, the order can be executed against the order. This can happen as long as the execution price would be at or inside NBBO. The institutional trader and the retail investor can both benefit as they are trading with each other directly.<\/p>\n","protected":false},"featured_media":0,"parent":0,"template":"","meta":{"_acf_changed":false,"footnotes":""},"traders-glossary":[13265,13251],"class_list":{"0":"post-179303","1":"glossary-terms","2":"type-glossary-terms","3":"status-publish","5":"traders-glossary-trading-terms-d","6":"traders-glossary-trading-alphabet"},"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","acf":[],"yoast_head":"\n