Should You Be Afraid Of Dark Pools?
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It sure sounds ominous: Dark Pools and Dark Pools of Liquidity are in the headlines frequently now. The term makes it sound like they’re nefarious forms of finance, but that depends on what camp you’re in.
And, to some extent, how much money and connections you have.
Dark pools aren’t necessarily evil. You don’t need to wear a mask and have Stormtroopers to master them. They’re simply connection networks that provide liquidity that are not displayed on order books.
Big investors and institutional investors say this allows them to enter or exit positions without revealing themselves to the market.
Some say that’s good. Others say it’s not fair.
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