Crossing networks are trading systems that allow a trading participant to bring together various customer orders (match on), provided they fit together to prevent the forwarding to external markets. Some of these systems also execute client orders against own holdings of each trading participant. This makes it possible for participants to save money. Since these systems do not show the standing bids and asks in the books, they are also regarded as dark pools.
The central feature of dark pools is the lack of transparency. How many securities are offered or demanded at what price, and the identity of dealers will not be displayed. The exact design of the trading opportunities differs from dark pool to dark pool.
The price is derived from another exchange. Typical in this context is the average of the highest and lowest sale purchase offer bid (Margin Trading Crypto). By definition, the execution of an order is thus uncertain. For this, the price is cheaper for both the buyer and for the seller as in the stock market. In addition, other market participants were given no information about the transaction. This is primarily for the sale of large quantities of securities is influenced by changing supply and demand on the stock market price.
In contrast to regulated or unregulated markets dark pools must meet no marginal transparency requirements. While there were no well-functioning dark pools in Europe in the summer of 2008, there have been few in the United States. However, the topic of dark pools in Europe and Asia is also gaining importance, since many investors prefer to remain anonymous with large order volumes.
The dark pools represent only a portion of the so-called Dark Trade. Dark Trade is a term referring to trade which is handled over the counter between banks and market participants. Lit Trade refers to the trade on regulated exchanges and the Multilateral Trading Facilities (MTF), regardless of whether it is handled on the trading floor or on an electronic trading system.
Foreign exchange market
The foreign exchange market (Forex) is a global, decentralized market in which currencies are traded. This Margin Trading Crypto market was created to facilitate the flow of money that is derived from international trade.
The daily volume of transactions move about 4 trillion U.S. dollars a day has grown so much that, at present, the total foreign currency transactions due to international operations of goods and services represent almost a residual percentage. Consequently, this market is quite independent of the actual trade and price variations between two currencies can not be explained exclusively by changes in the commercial flow.