Dark Pools Explained - How Institutional Investors Utilize Off-Exchange Trading

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The Plain Bagel

The Plain Bagel

Күн бұрын

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With GameStop back in the news, I wanted to take some time to touch on a topic that often comes up with stories of market manipulation and the like: dark pools.
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DISCLAIMER:
This channel is for education purposes only and is not affiliated with any financial institution, although Richard does work as an employee for an investment manager. Richard Coffin does not provide recommendations on The Plain Bagel - those looking for investment advice should seek out a registered professional. Richard is not responsible for investment actions taken by viewers

Пікірлер: 296
@ThePlainBagel
@ThePlainBagel 4 ай бұрын
Happy Friday! Today's video is sponsored by Blinkist: get a 7-day free trial and 70% off Blinkist Annual Premium by clicking bit.ly/ThePlainBagelMay24 or by scanning the QR code.
@kungfujoe2136
@kungfujoe2136 4 ай бұрын
let's say you do a dark pool transactions are plain market manipulation
@kungfujoe2136
@kungfujoe2136 4 ай бұрын
btw for cryptobro's off chain transaction = dark pool actions (kinda)
@AlexanderTheGoodEnough
@AlexanderTheGoodEnough 4 ай бұрын
Not surprised. You can pretty much do whatever you want with OTC trades. Edit: I can see a clear advantage in using these pools to avoid those high frequency traders who read or ping the order stack for scalping opportunities.
@samsonsoturian6013
@samsonsoturian6013 4 ай бұрын
That's basically how Robinhood makes a living. Scalpers pay them rent to access their dark pool.
@AlexanderTheGoodEnough
@AlexanderTheGoodEnough 4 ай бұрын
@@samsonsoturian6013 They do it on EVERY trade, OTC or not. Same goes for ANY brokerage that offers "commission free trading." That's what makes it commission free, HFT firms buying access to order flow. But that's HFTs for you. Want to see something depressing? Look at the property prices around the CBOE servers located in Aurora, IL. That's where some of these guys are physically located, trying to squeeze out microseconds being that close with fiber optic lines so they get their edge over the other HFT players.
@joelwhitmore3550
@joelwhitmore3550 4 ай бұрын
Oops someone pooped in the dark pool
@mulemule
@mulemule 4 ай бұрын
_"Dukeeeeeee ... !"_
@seneca983
@seneca983 4 ай бұрын
LMAO!
@NewSnakeEyes1
@NewSnakeEyes1 4 ай бұрын
While I would agree there are legitimate benefits to dark pools for certain traders or types of trades, I'd argue those benefits are only specifically for them, and are at the expense of everyone else. Dark Pools go against the fundamentals of what a public market is meant to be. For example, yes a dark pool would prevent a large pending trade from affecting the market, but I'd argue that it's suppose to affect the market. Any action on the market will affect the market, and that's how it's meant to work. Adjusting to and accounting for market shifts due to things done on the market is itself part of what defines it as being open and public... If we want to allow trades to be private until filled, then they should all be private until filled by default without the need for dark pools. Letting only some people do that undermines the entire system so much that we might as well not even have a public exchange to begin with.
@GregScholfield
@GregScholfield 4 ай бұрын
Agreed. The workaround to that is to limit how the order is posted or how the trade is worked. A broker is free to post a trade in as many blocks as they would like, creating the illusion that an order is smaller (or potentially bigger) than it really is. Smear those trades across time and you can accomplish the same thing dark liquidity does, arguably faster. I’ve used both trade working algorithms and dark markets and I would prefer to use a lit market algo to get an order filled quickly and with a high degree of pride efficiency. And yes, you could theoretically ban algo trading (lol, try) but then the trader just works the trade manually, accomplishing the same thing at a higher cost. Retails investors can do all of this too, except that it quickly becomes prohibitively expensive. I would argue that a lot of dark market trading is just mental stroking on the part of the trader. Issuers of sufficient market cap to ever fill a large order dark are so liquid an algo would’ve filled it faster and cheaper anyway. Smaller issuers where a big order might be disruptive are going to get filled through a cross.
@samsonsoturian6013
@samsonsoturian6013 4 ай бұрын
Dude, if you're going to outlaw dark pools, Robinhood will just charge a transparent commission.
@halohaalo2583
@halohaalo2583 4 ай бұрын
Every single market in the world will have exactly the same price. If the price of the security is $100 on the exchange, it will be maybe $100.01 in the dark pool. This is because of arbitrage. A buyer in the dark pool will not accept a higher price than the exchange. A seller on the dark pool will not accept a lower price than the exchange. So you end up with almost the same price everywhere minus the volatility
@testtoon1452
@testtoon1452 4 ай бұрын
Could not have said it better myself.
@shaunsensei6948
@shaunsensei6948 3 ай бұрын
completely agreed
@watcher333666
@watcher333666 4 ай бұрын
Next on a menu, "failure to deliver" and practice of share landing by brokerages.
@Yetus
@Yetus 3 ай бұрын
He’s a shill so he’ll probably tell his viewers “It’s a great idea to lend your shares! Be sure to turn it on!” It won’t hurt your investment at all lol. Unless you know what you’re doing, do not knowingly use or support share lending? PFOF, dark pools, etc.
@yakkow988
@yakkow988 4 ай бұрын
The biggest advantage seems to be to the dark pool operators. If Morgan Stanley sees big trades coming on their dark pools and trade on the regular market based on that info before it becomes public knowledge. I assume that’s illegal and they need some kind of firewall between dark pool operations and other systems.
@samsonsoturian6013
@samsonsoturian6013 4 ай бұрын
That's called frontrunning and is illegal
@tonycrabtree3416
@tonycrabtree3416 3 ай бұрын
@@samsonsoturian6013And yet, it’s still happening.
@gasmice
@gasmice 4 ай бұрын
Related reading: Dark Pools, by Scott Patterson (2013) Flash Boys, by Michael Lewis (2014)
@TheHunnyRunner
@TheHunnyRunner 4 ай бұрын
Ten years ago when Flash boys came out, I had the opportunity to sit in lecture and have lunch with professor who wrote some of the HFT algorithms. His lecture started with this "Who's read Flash boys?" *a bunch of Financial Advisors raise hands* "That guy is an idiot. We've been doing this for years. It's not a secret."
@multida
@multida 4 ай бұрын
​@@TheHunnyRunnerwhat did he say makes him so idiotic?
@fransliszt
@fransliszt 4 ай бұрын
Flash boys just felt like an AD for that one guy's service.
@breafoga
@breafoga 4 ай бұрын
poking the ape nest with this one lmao
@royboyshaw3332
@royboyshaw3332 4 ай бұрын
🐵🐵🐵🐵🐵
@TheHunnyRunner
@TheHunnyRunner 4 ай бұрын
You're not on their radar except if you' happen to be a beneficiary of one of their pension plans. Pension plan beneficiaries could be anyone so, fortunately, managers agree to act in the best interest and take a fiduciary standard of care for those beneficiaries. I would know. I've met them. But they still think most of those beneficiaries are dumb.
@placeholderdoe
@placeholderdoe 4 ай бұрын
That’s probably a part why this video was made. Giving out level headed information on a topic with a lot of bad actors
@TheLargestBlock
@TheLargestBlock 4 ай бұрын
@@placeholderdoe Bad actors are on the side of the "apes" too. Lots of benefit to front run retail in both Long and Short, spike the price to drive engagement, sell off on a pump. Easier said than done of course.
@placeholderdoe
@placeholderdoe 4 ай бұрын
@@TheLargestBlock My apologies if I worded in a way that made it seem like I was on the side of the “apes” the bad actors I was referring to were actually the “memestock apes”. Please don’t worry about me, I know that they are a group to stay away from. Have an amazing day!
@cunninghamb1
@cunninghamb1 4 ай бұрын
Dark pool is Deadpool's investing cousin
@savusilviu
@savusilviu 4 ай бұрын
Retail traders at IBKR trade trough darkpools
@ThePlainBagel
@ThePlainBagel 4 ай бұрын
I believe it's just IBKR Pro clients no? I was very close to mentioning this in the video but couldn't confirm their platform actively allowed small retail trades to opt for dark pool fills, and I don't use them myself, so I left it out.
@savusilviu
@savusilviu 4 ай бұрын
@@ThePlainBagelyou are correct, only IBKR PRO, but that is accessible to retail traders, no need to be a prime account or hedge fund or even SMA. They have access to about 7 dark pools and you can route all or some of your trades exclusively there instead of using their SMART order routing system.
@ThePlainBagel
@ThePlainBagel 4 ай бұрын
Good to know, disappointed I didn’t include this then. Thanks for the info!
@savusilviu
@savusilviu 4 ай бұрын
@@ThePlainBagel IBKR could be the source for those 100 shares orders because of option contracts.
@Shadowguy456234
@Shadowguy456234 4 ай бұрын
@@ThePlainBagel If you are an IKBR client living outside the US, you may only be able to open a Pro account, no matter your funds. This was the case for me.
@chrisbeaulieu8994
@chrisbeaulieu8994 4 ай бұрын
great video - thx for making it easy to understand for non-day traders. love your channel
@agent0422
@agent0422 4 ай бұрын
Can't get enough of the flashes of ominous music in these conspiracy explanation videos lol
@b.o.4469
@b.o.4469 3 ай бұрын
It's not a conspiracy.
@McLovinplusultra
@McLovinplusultra 4 ай бұрын
It is kind of convenient for large investors and inconvenient for small retail investors. Your explanation helps, but the real intent was to help large traders not "dumb" money.
@Sreyosreyam1227
@Sreyosreyam1227 4 ай бұрын
You definitely have my sub. This content is next level. For me Eledator was the turning point. Please keep doing what you do and keep being you, love it.
@basel3858
@basel3858 2 ай бұрын
I disagree with the argument that dark pools hurt price discovery. Question for the people who argue that the seller is avoiding his effect on the market by performing a block off exchange transaction - isn't the buyer also negating their effect and loosing upside? A transaction is not a buy or sell it's an agreement between two parties.
@markmanning-o4w
@markmanning-o4w Ай бұрын
When the markets are correcting, or worse in free-fall; who's sell orders will the market makers allow to fill first? It won't be the retail investors: it will be the whales from those dark pools. Its not by accident that we get locked out of our accounts when sell order volume is heavy, like what happened Monday 8/5/24. We're restricted from putting our orders in until the Whales, (who often are the cause of hi volume sell offs ) have already sold at higher prices. [ Please do a video on the topic of the common practice of trading platforms restricting account accessor and market orders during sell offs ].
@pablog80
@pablog80 3 ай бұрын
Soooooo good and interesting. OTC deals were something I had never completely figured out. Now I do. Many thanks!
@lambdalandis
@lambdalandis 3 ай бұрын
I love when the "conspiracy music" comes on during your videos. It's always on point.
@Money8OOST
@Money8OOST 4 ай бұрын
I know what a brown pool is. I once made the mistake of going for a swim after eating Taco Bell.
@francislagace1743
@francislagace1743 4 ай бұрын
Wow had no idea about these pools ! Thanks a lot as it was very informative 😀
@jimbojimbo6873
@jimbojimbo6873 4 ай бұрын
Dark pools are great It stops the annoying price changes when you sell or buy significant quantities
@savusilviu
@savusilviu 4 ай бұрын
Takes vol out of the market. For vol sellers it really sucks.
@Nighthawk20000
@Nighthawk20000 4 ай бұрын
Sounds like its only "great" for ridiculously rich people. Another barrier of entry for the normal investor and another advantage for the absurdly rich
@NewSnakeEyes1
@NewSnakeEyes1 4 ай бұрын
Price changes happening when you go to buy or sell is the whole point of a public market... If you want trades to be private then they should all be private.
@homieinthesky8919
@homieinthesky8919 4 ай бұрын
​​@@Nighthawk20000 you do realize that dark pool prices change by 10% each trade at times right? Do you think a regular trader would be happy when a stock they buy goes down 10% in a day? There is a reason why there are things called "market makers". Those are the ppl that provide volatility for the average joe on the regular stock exchange
@samsonsoturian6013
@samsonsoturian6013 4 ай бұрын
​@@savusilviulow volatility is a good thing
@amangine
@amangine 4 ай бұрын
This was very informative! Perhaps you could do a similar video on after-market trading, with its pros/cons.
2 ай бұрын
TLDR, it's stock exchange with hidden order book.
@TechPeeves
@TechPeeves 3 ай бұрын
Hi Plain Bagel, I'm one of your long followers and love all your videos! Super happy about your success after seeing your interview with our PM I have a question: Our interest rates had a cut yesterday. Logically, banks should benefit from this. But I noticed all the bank stocks were down yesterday. Which sector benefits from cuts and which ones suffer from cuts? Thanks!
@SsdistJeje
@SsdistJeje 4 ай бұрын
Just dumped my 3k gme shares at 46$, finally out of the cult...
@velox__
@velox__ 4 ай бұрын
Good job, that shit isn't healthy
@cumibakar10
@cumibakar10 4 ай бұрын
Joke’s on you, I unloaded at $70
@b.o.4469
@b.o.4469 3 ай бұрын
Portnoy
@u2b83
@u2b83 3 ай бұрын
I encounter order flow bs as soon as I start entering my retail trade, before it's even executed! Often it runs up in price before I can even click buy. When this happens, I cancel the order, wait a few minutes and often get to buy it at the pre-runup price. I can see how orderflow frontrunning can be profitable because most people don't have the patience for this.
@Pockymuncher888
@Pockymuncher888 4 ай бұрын
A high percentage of GME trades are all OTC. Don't even go to lit market
@mmm5225
@mmm5225 3 ай бұрын
According to Gensler most of retail's trades are handled via dark pools. Retail trades, more often than not, don't hit the lit market. How did you come to the conclusion that retail traders have no interaction with dark pools?
@ThePlainBagel
@ThePlainBagel 3 ай бұрын
"Direct access"
@ScottHess
@ScottHess Ай бұрын
Brokers have to give you the market price or better - but they don’t have to use the market to fulfill the transaction. This does disadvantage retail investors to the extent that the dark pools obscure pricing so that brokers can make money doing this.
@MorrisFilmPhoto
@MorrisFilmPhoto 4 ай бұрын
Thanks 4 ⭐️ Reportage!
@wilkinsune
@wilkinsune 4 ай бұрын
Thanks! I've been waiting for this for a while.
@bradthebad01
@bradthebad01 4 ай бұрын
Who decides when and how many buy orders are moved from lit exchange to OTC?
@ThePlainBagel
@ThePlainBagel 4 ай бұрын
Whoever is submitting the trade decides where it gets filled - the institution investor has to actively submit a trade to the relevant platform. Brokers might choose between the two options on behalf of their clients based on whichever offers a better fill, albeit that's where payment for order flow raises a conflict of interest.
@bradthebad01
@bradthebad01 4 ай бұрын
@@ThePlainBagel I remember seeing a post where GME orders were traded 70 ,80, or as high as 90% OTC during the recent high volume weeks. Is that high percentage of OTC orders normal in the market or an outlier? Thanks!
@ThePlainBagel
@ThePlainBagel 4 ай бұрын
@@bradthebad01 definitely an outlier, but could be reflective of high demand. It’s hard to argue what someone’s intentions are from the outside, but with such a volatile stock you could expect more HFT activity, which market makers might move to dark pools to avoid. Again, it’s hard to say
@PukeSkinwalker
@PukeSkinwalker 3 ай бұрын
The problem with dark pools is that they are only in 1 state and we don't know which one and thus cannot hold them accountable even though I pay in another state. The structure of them legally is like the lottery where each state has them. So any dark pool accountability is likely based on the state you make the transaction. Swaps were the big thing that caused the government to bail out the US. The reason that congress said that they cannot regulate dark pools is likely because of how it is legally structured and knowing what state that dark pools exist in and where their SEC is will give the clearcut regulation as to where the swaps occur. Swaps and these dark pools are the biggest financial risk in America.
@PukeSkinwalker
@PukeSkinwalker 3 ай бұрын
It is needed because large trades need to find a broker or it will tank the stock.
@ljg3productions630
@ljg3productions630 3 ай бұрын
Really great explanation
@christopherthompson9578
@christopherthompson9578 4 ай бұрын
So correct me if I’m wrong but it seems based on this explanation that they’re a tool for large corps to derisk themselves onto unknowing individuals.. so it makes sense why someone would want to sell into them but knowing that why would someone want to buy in the pool?
@b.o.4469
@b.o.4469 3 ай бұрын
Why should anything done with a security not impact the market? It's still demand for the company... The market is completely manipulated.
@StephenMortimer
@StephenMortimer 4 ай бұрын
Thanks!
@jasonshaw3605
@jasonshaw3605 4 ай бұрын
What happens in the case of a limit or minimum order in a dark pool where the limit/minimum is not reached for part of or the whole order? Does only part of the order go through, or does the whole just not get filled? I can see how an order for a large trade might be better filled through a dark pool in the case of a limit. If filled on the public market, the security might be artificially priced up or down or be prevented from going up or down with the expectation of a preorder. Only to have the trade never happen or only be partially filled because the limit or minimum was not reached for the entire order.
@thomasa5619
@thomasa5619 4 ай бұрын
Not sure about the other markets but I was reading ASX documentation a couple years ago and I believe they can enter trades which will only execute when they can be completely filled
@AdverseOpinion
@AdverseOpinion 4 ай бұрын
The plain bagel is getting some sesame seeds on it with this video.
@user-ny6qq8xz6o
@user-ny6qq8xz6o 3 ай бұрын
On the point of large volume trades, wouldn't a limit order mitigate changes to the market? If traders saw a pending large volume trade and sold their positions, lowering the price, then the large volume trade wouldn't happen at all, right? Isn't there also the possibility of putting in orders that can be completed piecemeal rather than all at once?
@ragnaroksunset
@ragnaroksunset 4 ай бұрын
It's not nefarious. The real intent is to make more money and lose less money due to how markets would respond to lit actions.
@bloodyblase3074
@bloodyblase3074 4 ай бұрын
The thing is it ONLY benefits darkpool participants at the expense of everyone else. People who got the shares from someone dumping them wouldn’t know that they’ve been handed a hot potato. And since darkpool mainly facilitates large institutional investors, one could argue that it’s kind of elitist.
@ragnaroksunset
@ragnaroksunset 4 ай бұрын
@@bloodyblase3074 oh yeah, my point is precisely that. It's the absolute barest definition of market manipulation. It's just... allowed.
@BrandonMillerRaps
@BrandonMillerRaps 3 ай бұрын
What’s to stop a customer of pfof from routing sell orders to a lit market and buy orders to dark pools?
@ADobbin1
@ADobbin1 4 ай бұрын
I'm assuming off exchange includes after hours trading as well? It is after all done outside of the open and public exchange.
@MattSmith-rr2he
@MattSmith-rr2he 4 ай бұрын
Really funny this guy. Started the video saying that dark pools were boring and not nefarious, and then carefully explained how dark pools are used to allow big institutions to dump their shares on retail.
@Kindrin
@Kindrin 4 ай бұрын
Love the topic.
@WallaceRoseVincent
@WallaceRoseVincent 4 ай бұрын
Would dark pools and the hidden trading processes explain why pltr had a great quarter but the stock price went down after the first quarter results were announced? Were retail buyers of pltr played by big institutional investors?
@homieinthesky8919
@homieinthesky8919 4 ай бұрын
Dark pools dont change regular stock prices. Its litterally blocked off the regular stock market. Also pltr recently got big US defence contracts and if you have seen the trend of companies using AI getting boosts in stock value pltr is one of those companies.
@WallaceRoseVincent
@WallaceRoseVincent 4 ай бұрын
@@homieinthesky8919 Pltr was probably around 23/share before the earnings call/announcement. Pltr announced a great quarter. Then the price goes down. Do you have any theories as to that odd price action behavior. Thanks in advance.
@MK-gm2mq
@MK-gm2mq 4 ай бұрын
Pltr is gonna have a very good run for now
@smallfry8788
@smallfry8788 4 ай бұрын
​​@@homieinthesky8919 The original commenter has a point. What explains PLTRs great quarter but lower price AFTER a great earnings call!!!!!
@camiloguzman1801
@camiloguzman1801 2 ай бұрын
Wasn't the Dark Pools, the place where institutional investors where abused and exploited by HTF firms?
@Gest-wg2yb
@Gest-wg2yb 4 ай бұрын
Great video
@poisonpotato1
@poisonpotato1 4 ай бұрын
If i have to go through all the hoops and have my trades public for a public company theu should have to too
@stephenanthony5923
@stephenanthony5923 4 ай бұрын
Dark pool information is very important to long term investors. Look up the average hold time for US equities by institutional investors. It's only 2 to 6 fiscal quarters. No one is building up 10 year positions. This isn't the baby boomer hayday years.
@henryackerson7138
@henryackerson7138 4 ай бұрын
Seems like he was talking about long-term investors meaning retail investors not institutional
@HarvestStore
@HarvestStore 4 ай бұрын
Great video.
@joebazooks
@joebazooks 4 ай бұрын
also not sure how this is any different than "iceberg" transactions where the system will automatically list another ask for N stocks as soon as N stocks are sold. same affect pretty much
@Abrin32
@Abrin32 4 ай бұрын
Good stuff.
@roc7880
@roc7880 4 ай бұрын
ban high frequency trading or make it impossible by taxing the trades, so OTC trades would be also irrelevant.
@МатвейВолтов
@МатвейВолтов 4 ай бұрын
Nice vid, I came fast and joyful
@banishedprivateer
@banishedprivateer 4 ай бұрын
More than half of GME volume trades off the exchanges... Which greatly kills action discovery and by no means is a "small" trade.
@samsonsoturian6013
@samsonsoturian6013 4 ай бұрын
Are you complaining that buys don't necessarily push up the price a lot?
@jawmare
@jawmare 4 ай бұрын
off exchange trades get printed to tape within 10 seconds so there is no 'kililng' of price discovery
@MichaelWilliamz
@MichaelWilliamz 4 ай бұрын
Super interesting!
@MTawfik86
@MTawfik86 3 ай бұрын
Does daily volume count in the darkpool trades?
@kold4642
@kold4642 4 ай бұрын
Do you find that your channel has some correlation with the ups and downs of the market?
@ev3rybodygets177
@ev3rybodygets177 4 ай бұрын
So you are not allowed to trade in dark pools but investors can and will invest in them for you with your retirement. Got it
@durian116
@durian116 4 ай бұрын
Super informative as always! Also, good choice of music for those sinister sections lol
@davianoinglesias5030
@davianoinglesias5030 4 ай бұрын
Dark pools should be illegal for publicly listed companies or any assets in the open market.
@TheThreatenedSwan
@TheThreatenedSwan 4 ай бұрын
Interesting
@michaelsmith4904
@michaelsmith4904 4 ай бұрын
@12:00 my thoughts exactly
@zellcrs
@zellcrs 4 ай бұрын
I got one of those in my chamber of schemes.
@WillySquishCat
@WillySquishCat 4 ай бұрын
Good explanation. I have no idea why this video is being treated as some sort of ape checkmate lol many of their sentiments are indirectly acknowledged in the video, some are indirectly countered.
@jordibt1789
@jordibt1789 4 ай бұрын
Did i hear LIT exchanges? 🔥🔥
@TideV2
@TideV2 4 ай бұрын
Anyone who cites dark pool transactions as part of their trade thesis is completely clueless.
@aEtherEater
@aEtherEater 4 ай бұрын
"Allowing large trading houses to trade without affecting the broader market is great for every one!" Hard to fill trades are a feature, not a problem.
@boukie85
@boukie85 4 ай бұрын
this bagel is gonna get creamed all over in a few weeks 📈📈
@claucmgpcstuf5103
@claucmgpcstuf5103 2 ай бұрын
SO WATH SI wars than tha nft or critpo or soskt is dark pool lol ... yea ..so ultra speculetiv onmost iligal !!
@dustycrevice3496
@dustycrevice3496 4 ай бұрын
Man, I hate when I'm trying to sell and the price keeps going down before my order is filled.
@Eugenewong794
@Eugenewong794 4 ай бұрын
The market is always unfair if you're stupid or reckless, so get urself informed and educated, it's funny how ppl in the west complain about market fairness when the West is so transparent, Im frm SEA and here it's not as transparent and not as 'fair'
@tomlxyz
@tomlxyz 4 ай бұрын
Complaining is how you get improvement. complacency makes it worse
@Stephen-wh7vl
@Stephen-wh7vl 4 ай бұрын
Dude says you might think dark pools sound like a benefit to bad actor but actually people are getting hurt by bad actors in the dark pools. What?
@sourabhmayekar3354
@sourabhmayekar3354 3 ай бұрын
Nice
@AdamChodaba
@AdamChodaba 4 ай бұрын
Not sure how you can post about all these benefits when trading is a zero sum game. Who's losing out then?
@danshive4017
@danshive4017 4 ай бұрын
Oh hey, I just watched a video on what happens to delisted stocks yesterday. Neat!
@jensschreiner5351
@jensschreiner5351 4 ай бұрын
No... trading off exchanges by market makers is fully okay. Plus they're so irrelevant that volume is often 70-90% of daily trading of a stock. Totally fine and nothing to see here. Please move on.
@boukie85
@boukie85 4 ай бұрын
u get it lol, this shill is so comical... what a 🤡
@timlodge8267
@timlodge8267 4 ай бұрын
Sounds a little bit about inside trading.
@TheSpartan3669
@TheSpartan3669 4 ай бұрын
How?
@Bestoftherest222
@Bestoftherest222 4 ай бұрын
This dude just glosses over FINRA and pretends Darkpools are regulated. He also overlooks how the lack of regulation is often used to move pressure from the open market. But whatever.
@kingcoconut3697
@kingcoconut3697 4 ай бұрын
He got his cfa He is going by every rule like everyone else who has experience managing other peoples money
@rdapigleo
@rdapigleo 4 ай бұрын
They do sound shady.
@justo35
@justo35 4 ай бұрын
You forget to mention about how they use dark pools when a stock gets halted on the way up...eg GME AMC than all of a sudden when trading resumes the stock falls 5-10 % immediately because of dark pool trading while the stock is halted...all in all it should be illegal as it taints real price discovery
@boukie85
@boukie85 4 ай бұрын
he didn't forget it, it's purposefully left out. he is a total clown 🤡 & shill
@WannaKnowAll
@WannaKnowAll 4 ай бұрын
So a 90s era exchange that is less regulated and mainly used by hedge funds isn't something to worry about?
@tomlxyz
@tomlxyz 4 ай бұрын
Have you not listened to how they work?
@WannaKnowAll
@WannaKnowAll 4 ай бұрын
@@tomlxyz I did, and feel I summarized it quite well.
@Mr.Muckington
@Mr.Muckington 4 ай бұрын
From the man who sold you cdos
@humphrey
@humphrey 4 ай бұрын
2nd
@iXPilot
@iXPilot 4 ай бұрын
Richard, man... Stop. Ruining. Conspiracies! I'll miss that ominous music when you will run out of these... 😢 BTW, what is that music? :D
@Stephen-wh7vl
@Stephen-wh7vl 4 ай бұрын
You mean it's not fair, rigged for the big guy.
@andrewfriedrichs9340
@andrewfriedrichs9340 4 ай бұрын
This is the US we are talking about. If there is a regulatory gap institutions will exploit it, and when it blows up in their face taxpayers will bail them out. I believe they call it a virtuous cycle.
@anonanon1604
@anonanon1604 4 ай бұрын
still sounds like another blatantly unfair advantage which exists only for the people who already enjoy every other blatantly unfair advantage to me tell us why failures to deliver aren't a problem next
@azaz6823
@azaz6823 4 ай бұрын
I can understand if an individual or institution buys a ton of shares thru the dark web. But if a normal person like me purchases a share at the same time 100k other people purchase it, if the exchange routes our purchases through the dark pool without our consent then that supresses the buying pressure. That is price manipulation and indefensible. 💯
@tomlxyz
@tomlxyz 4 ай бұрын
But that does not happen?
@TheHunnyRunner
@TheHunnyRunner 4 ай бұрын
Why would the exchange route your purchase through the dark web when the exchange was made to facilitate that trade. They're already making money off you on the bid/ask spread. This makes zero sense.
@azaz6823
@azaz6823 4 ай бұрын
@@tomlxyz it happened with AMC and GameStop.
@halohaalo2583
@halohaalo2583 4 ай бұрын
That is not how anything works. Please go and take a course on market fundamentals
@azaz6823
@azaz6823 4 ай бұрын
@@halohaalo2583 didn't say that's how it's supposed to work, but it's what happened. Even regulators agreed there were mishandlings. Just research it
@ChelovekOdin
@ChelovekOdin 4 ай бұрын
Posted a link in GME subreddit. Enjoy views. Thanks!
@samsonsoturian6013
@samsonsoturian6013 4 ай бұрын
What. Have you done...
@hanifarroisimukhlis5989
@hanifarroisimukhlis5989 4 ай бұрын
First of all, are you a sadist or trolling?
@TEM1
@TEM1 4 ай бұрын
Greta Brinkman. It’s not about bbq. 1986
@DumbledoreMcCracken
@DumbledoreMcCracken 4 ай бұрын
So that's how they avoid paying taxes
@jeffreyyoung4378
@jeffreyyoung4378 4 ай бұрын
You state dark pool are not for nefarious reasons... Then proceeded with telling us big institutions can potentially "reasons" for selling and buying shares without affecting price (price discovery).
@ianflem3717
@ianflem3717 4 ай бұрын
If dark web illegal, why dark pool can be legal?
@Loi_of_Earth
@Loi_of_Earth 4 ай бұрын
No views in 16 seconds??? Fell off.
@romainhedouin
@romainhedouin 4 ай бұрын
You repeated yourself a lot in this video, that's quite unusual
@scarymonkey3496
@scarymonkey3496 4 ай бұрын
Man usually you present very reasonably, but you really missed the mark with this one.
@ThePlainBagel
@ThePlainBagel 4 ай бұрын
Always open to feedback
@fakenamerealchungus9851
@fakenamerealchungus9851 4 ай бұрын
​@@ThePlainBagel you didn't say GME is going to the moon and making investors gorillionaires 0/10
@boukie85
@boukie85 4 ай бұрын
🤡🤡🤡🤡
@JonJon-kx6xl
@JonJon-kx6xl 4 ай бұрын
I got a dark pool you can swim in 😮
@JonJon-kx6xl
@JonJon-kx6xl 4 ай бұрын
Don't delete this comment
@tomlxyz
@tomlxyz 4 ай бұрын
@@JonJon-kx6xl did you just respond to yourself?
@JonJon-kx6xl
@JonJon-kx6xl 4 ай бұрын
@@tomlxyz yeah people delete my comments all the time had to make sure he didn't
@KazuyaMithra
@KazuyaMithra 4 ай бұрын
FFIE bros?
@shainhaggadone9943
@shainhaggadone9943 4 ай бұрын
Crimes happen there
@Trammel_Hand
@Trammel_Hand 4 ай бұрын
Talking out the side of your mouth, trying to make this seem normal and insignificant. Its not.
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