Dark pools are exchanges where people trade stocks anonymously. Paddy Hirsch explains how they work, and why the SEC is considering regulating them. #MarketplaceAPM #SEC #EconomicExplainers Subscribe to our channel! / marketplacevideos
I never sell at a lost but I admit I was upset when i got into amc at 14 last week. I am true retard but this gave me hope. Time to actually average down.
@@martinithechobit I bought in over a month ago at $14 and it tanked so I continued to buy and my average is now at $7.62. Hold strong 💪 this is gonna happen eventually. The hedge funds are digging deep to manipulate AMC. My opinion is they’ve gone all in on this trying to scare us all out and it’s gonna backfire on them.
Exactly. The whole point is that Wall Street and public trading is SUPPOSE TO BE PUBLIC. Everything us suppose to be clear and out in the open. This is insanity where billionaires become billionaires five / ten and 20 times over.
This a good thing imagine someone dropping millions of shares at once on the company your most invested in Now your beloved company just lost 30-45% in less than a minute and can start a sell of by retail investors. I work for Merrill as an analyst so I may be biased to the ways of Wall Street but trust me they have there purpose .
@@teflonmusk11Boh so its for our benifit, kinda like everyone gets a trophy.. No. If someone dumps and my stock goes down then thats the process.. I will hope someone will equally buy maybe me for that lower price🤦🏾♂️🤦🏾♂️ and bring it back up.. Simple and right we dont need false protections that allow for fraudulent activities period..
Wow. Video uploaded 11 years ago. SEC needs to step in.. whats happening with AMC is wrong. I can only imagine how powerful these dark pools have become by now.
it kinda is because if amc and gme get traded through darkpools from PE to PE noone will ever know how many shares there are truly on the market, they could sell borrowed shares on the darkpool and then burrow them again on the free market... Basicly ending up with lending shares from Fund A selling to private equity on dark pool, the private equity would then lend out those shares again on the free market, person who lend from fund A can lend from fund B now to fill the shorts, now he can burrow shares from fund A again and sell them on the market and doubled the amount of the shares whiche exist if not tripled at that point.
A summary at the end would be amazing. Theres lots of great information here and it's hard to break it down when your hearing new things for first time.
Additional problem, as we now know, and has been admitted by the SEC and Gary Gensler, that market makers are also using dark pools to route retail orders away from lit markets.
Amc brought me here as well ahaha!, I intentionally watched a video posted way before the AMC reddit saga had begun, that way I'd get unbiased information.
Thank you for this (all these years later). From a positive perspective, the large funds certainly have a use case for using what are essentially anonymous pools. That said, as you intimated at, THE FACT that shares are trading hands is viewed as materially significant information because it plays into the psychology of the markets. What this presentation doesn’t show is how dark pools can be exploited not only for anonymous trading but also warehousing, when shares that sit here are not matched.
Paddy, please make a video focused on Improved Prices. Include information on characteristics of a typical investor who is able to get improved pricing and why most other investors cannot get improved pricing.
GOOD VIDEO! TOS Renko bars left on ATR 20 days will let you know on any given day what the market is doing. Approximately a 75 to 85% accuracy. Just do NOT set the box size! Look for the color of the bar at close. If it's green, go long. If it's red, go sort. If it's trading in a range, watch carefully. Best Regards, CT
Well what happens when individual investors orders are routed through dark pools? We weren't allowed then now they're being routed there to supress buying pressure
Soooo, the billion dollar question is; can a large firm short a stock on the open market, then cover their shares through a dark pool?....as to drive price down, but not back up. Inquiring minds would like to know. I haven't found one single answer to this
When you sell $GME are you accepting $1K for your sale or are you expecting $50M? That's my answer. They can't buy pretend shares to close. I don't know where else they're going to buy +1 billy shares from, if not from us. When they naked short, it's assumed they can get the shares, they don't and then they FTD. They kick that can. But if they bought +1 billy pretend shares in dark pools, well ... we're still holding all of the synthetics they rehypotheticated. So those +1 billy pretend shares they "bought" never show up. They weren't delivered. So they didn't close.
The whole point of the dark pool is to prevent volatility in the exchange price, but as the speaker in the video notes it leaves the retail investor at the whims of wholesale transactions. It's a big deal because it could potentially serve as a mechanism for wholesale investors to rid themselves of toxic financial assets prior to there being a systemic issue. But more to the point of the matter, we simply do not have the technology to detect fraudulent behavior. There is far too much data being collected at the points of exchange to make accusations or hold traders accountable for unethical decisions. Its simply a matter of whether or not wholesalers should have the same privileges as retail investors. Savings is at stake and in the midst of the chaos prior to a crash dark pools are a great exit for pension funds (billions of dollars worth of assets), but a disadvantage for traders monitoring their own stocks on a public SIP.
“A mechanism for wholesale investors to rid themselves of toxic financial assets”? For every seller, there must be a buyer. So if a wholesale investor dumps $1 B of stock that he think will drop, someone just as big needs to buy. If the asset is truly toxic, they lose, not the retail investors.
You must have deliberately missed key issues. Dark pools provide secrecy, enable insider trading, enable large funds to manipulate the market and provide advantage to large financial investors
i am not clear yet. So, does the transaction done in dark pool eventually be reported to the regular trading market or does it impact the price anyhow?
I don't believe it shows the actual transactions just who is using it and how many trades they made. If someone were to sell borrowed shares to the market, use that capital to buy in the dark pools, then sell those shares into the market that definitely has an impact.
Question, when the hedge funds need to cover their shorts, can they seek institutions willing to sell to them without going to the public exchange first? Basically, I fear all of the apes in AMC will hold out, but the institutions in the dark pool has first dibs.
Thanks for the video! How about making a video about flash trading/ or those high power computers that grab my trades in a nano-second and look at them?
I trade commodities..I am very annoyed that the COT report comes out a week late while traders can access retail sentiment updated in some cases every 15min
To all apes around the world. Be strong, buy and hold! We are in the Endgame. In the near future you will have your dream life. Seeds of kindness will bloom and our time to create a better tomorrow will come
you could probably front run trades on the exchange knowing about a large trade in a dark pool. However, if you are not jumping in and out of trades, but holding for years, this wouldn't affect you.
One odd detail: the Dark Pool transactions have not, in fact, concentrated to large-scale transactions. Seems to be more in line with odd-lot hedge fund executions. A second detail: front-running is apparently an automatic feature of the game for a sell-side that uses a Dark Pool to do client execution. How nice.
I’m an 🦍 so it’s hard to comprehend. But isn’t announcing after the fact the same thing. The market reacts either way? How do we know if they buy in the dark pool but sells to the nyse? Ape really confused 🙈
why would Alisa let Sam say publicly that he has sold 1mln dollar of GE, wouldn’t that drag down the price of GE and put alisa in an uncomfortable situation?
I still find it difficult to understand why Alisa would be so interested in a Dark Pool deal. Going by Paddy's example, if she was buying it at the Stock Exchange; she pays $150 for the first block and $120 for the last block; on aggregate she would be paying less than buying all of it at $150. Can you please explain why she would be interested in a Dark Pool trade?
Anirudh Krishnan ur right, also I guess if the stock was broken up into blocks, Alisa might not be able to obtain all of it at once as there are other buyers. Much more convenient just to buy a single whole block via dark pools.
