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Trade like the pros in dark pools█ Trade like the pros in dark pools If you're accustomed to trading on the stock exchange, you know that an exchange operates like a digitalized marketplace. Buyers and sellers gather around a stock and indicate what they're willing to trade for, hoping that two orders will match. Before you decide at what price you're willing to trade, you likely look at the order book depth. There, we see how many shares are seeking buyers or sellers at a specific price. For a trade to be completed, the so-called spread needs to be crossed. The spread is the difference between the buying and selling price, in the example above 20 cents (226.40 – 226.20). In stocks that are traded very frequently, the spread is smaller and it's seldom a problem to execute very large volumes on the open market. █ Dark pools simplify trading in small companies Many stocks have too small a turnover to place a larger order without significantly affecting the price. Therefore, professionals have used dark pools for many years. Leading brokers are now making this flow available to all their customers. The advantage of a dark pool is that you don't need to show your order to other market participants until a trade has been completed. This facilitates, especially, trading in larger volumes. Another advantage of dark pools is that trades are made at so-called midprice. Returning to the example above, a trade would occur when someone is willing to pay the full spread of 20 cents. Had the order book been a dark pool, the midprice would have been 226.30 SEK. In this way, it results in a better price for both buyers and sellers. For those trading in larger volumes, this can mean a lot of money. █ All orders pass through dark pools The fact that dark pools are now available to everyone does not mean that all orders should be placed there. In fact, there are several barriers to how much trading can be routed this way before the dark pool is temporarily limited. When you place a regular order, thanks to so-called smart order routing, it will check if a better completion can be achieved via this dark pool than on the open market. So, whether you choose to actively place an order in the dark pool or not, you can benefit from the characteristics of the dark pool. █ Shouldn't the exchange be completely open? A criticism of dark pools is that they are exactly as they sound, hidden. But all trades made in Nasdaq Stockholm's dark pool are visible under completions. Stocks with low turnover can be difficult to trade without significantly affecting the price. ⚪ Let's take another example. Here we have a stock where the entire buy side corresponds to just over 130,000 SEK. That's a lot of money, but not an unreasonable holding for a private individual. This is also an order book from a company with a market value of about 1.6 billion. Thus, a small company, but not so small that trading for a couple of hundred thousand SEK should be unreasonable. Here, the spread is also 30 cents. Which is over one (1) percent on this stock price. Being able to halve this cost can save a lot of money both directly and over time. It is also possible to hide parts of an order today. In the advanced order placement on the open market, there is actually a tool for that problem as well. There, you can set the visible number of shares to be shown in the order book. █ When you should use the dark pool If you have never had problems with your order placement, you probably don't even need to consider placing an order in the dark pool. But if you trade stocks where you need to split your orders to not swallow too large a part of the order book, it might be valuable to try. ----------------- Disclaimer This is an educational study for entertainment purposes only. The information in my Scripts/Indicators/Ideas/Algos/Systems does not constitute financial advice or a solicitation to buy or sell securities. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information. All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, backtest, or individual's trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on evaluating their financial circumstances, investment objectives, risk tolerance, and liquidity needs. My Scripts/Indicators/Ideas/Algos/Systems are only for educational purposes!
Editors' picks
OMXSTO:ERIC_AEducation
by Zeiierman
3
Amining for 1400% ROI, Danncann pharma just broke a trendlineAfter the good news that Stenocare got products confirmed in danmark now its danncann pharmas turn to roar. I already done 100% profit as i am moving my stoploss to 0,032 incase it would be a faker but ceritainly is not. Plan to take profit at the fib+historical resistance. I dont see why i should cash out earlier and i dont see that everyone will just hodle up to 1-2 crowns, people will profit at the resistance line i hope i aimed my profit target correctly at 0,62 crowns. Handsome profit ill be happy cashing in 60k kronor on my 4k kronor. This hopefully wakes up numinus wellness that i am also invested in and other valueble fundementaly good low priced stocks at the moment. I think it could be the starting sign in this market particilar but also other markets as russel 2000 has not roared since 2021 mars but other indexes have. Looking for this trend atleast 6 months. So ill be milking danncann for sure expect it to go to 20-30 crowns. Lets se if im right. /simon Nilsson.
DLong
by Prosperitycharts
Head and Shoulders and moreEvo is an online and media, gamming and lottery company from sweden that is expanding all over the world. Fundamentally sound and with great financial ratios. Tech wise is doing a clear reverse HaS that should break higher. On a wave analysis it might be in wave 5 of 1 which means you might want to buy now 1,227 for the break of the neck and with a target of 1,280 - 1,300. Then sell and wait for wave 2 to unfold and buy again for the real wave 3 rally.....
OMXSTO:EVOLong
by Taigosan
Goobit path to prosperity. 500% ROI for me short termHey you man or woman who consider yourself a trader. I am simon from sweden and i love to predict chart patterns. Today we take a look at Goobit who deals as a a broker for selling and buying bitcoin primary, its the oldest in Sweden started 2009. Right now its resting on ema 10/20 crossing and it is about to take of and leave these levels for good in my opinion, attractive value at 0,15 sek, i see some resistance around 0,88 where i will profit around 500% expecting the market to be bearish at that point. Ill keep my eye on it and expect ATH within 6 months. Hope you like the chart and the information and entertainment i provide, please subscribe for more chart analysis like this. I will buy tomorrow and plan to profit at 0,88 with a 500% return on my investment then let it cool of and let the market give me clear signals where it want to go. /Simon.
BLong
by Prosperitycharts
2
Starbreeze 5 year comeback rally 700% and 1150% result targetHey trader. i am simon and i will show you my plan and opinion on starbreeze today. We see starbreeze at 0,48 sek today. Fundamentally things is going well, last Q3 report showed 495 Million crowns revenue, mostly from payday 3. Fundamentally people love the game the game play but they don't love to be stuck in waiting room + no offline mode but thats basically it on the negative side, the rest is positive which can be fixed. TA weekly chart: ATH somewhere 15 SEK, with big resistens 3, 4,2 and 6 kronor. We see starbreeze bounce back from EMA 10 testing it for the first time after what i think is the bottom and will break soon. and rsi looks good under bought, whenever this lands and shows divergence + under bought + two legs is is a good place to buy for me but i already bought and will buy more whenever i get more money to invest. My plan is to take profit at 3,7 and 5,8 since it connects to major resistances historically both 2013 and 2002, to be on the safe side with a handsome result of 700% and 1150% ROI-what i invested. Timebased this move happens before june and within 6 months. I will the assess the situation and probably reinvest later on for new ATH with 20-30-50-100 kronor. But first i will pick those two yellow line targets 3,7 and 5,8. And take the profit in my hand where it belongs. Disclaimer: I am not a financial advisor. This is for entertainment and information purposes only. Everyone has there own risk. Agree or leave immediately.
OMXSTO:STAR_BLong
by Prosperitycharts