Dark pools explained

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  • Опубліковано 5 лип 2009
  • 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
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КОМЕНТАРІ • 329

  • @yungchuckkay766
    @yungchuckkay766 3 роки тому +334

    AMC brought me here

  • @URAWESOME94
    @URAWESOME94 3 роки тому +347

    I seek knowledge in my quest for tendies.

    • @katkane7448
      @katkane7448 3 роки тому +18

      BRUTHUUURRRRRRRRRRRRR!!!!!!!

    • @URAWESOME94
      @URAWESOME94 3 роки тому +19

      @@katkane7448 this squeeze will be perfectly balanced, as all things should be. Ape strong.

    • @bigrobwazhere6268
      @bigrobwazhere6268 3 роки тому +12

      This is the way.

    • @3sgtecelica
      @3sgtecelica 3 роки тому +7

      smart ape

    • @ByMyRecords
      @ByMyRecords 3 роки тому +7

      My man & Fellow Ape I am too here Seeking "TENDIES"

  • @KillstreakerFTW
    @KillstreakerFTW 3 роки тому +87

    UA-cam blessing fellow apes with knowledge. Remember, Diamond hands 🖐💎

  • @jayp.3898
    @jayp.3898 4 роки тому +79

    This guy is a gold mine when it comes to explaining things! Bravo mate!

  • @YuliJade
    @YuliJade 3 роки тому +48

    The algorithm knew

  • @kaptenkrok8123
    @kaptenkrok8123 3 роки тому +64

    The legality of this is absurd

    • @mikekaroules2820
      @mikekaroules2820 3 роки тому +15

      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.

    • @md5490
      @md5490 5 місяців тому

      ponzi scheme to fleece the 99%... I've switched to real estate after seeing this video.. good luck 👍

    • @teflonmusk11B
      @teflonmusk11B 3 місяці тому

      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 .

    • @klyman79
      @klyman79 Місяць тому

      ​​@@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..

  • @djramboholidaylights
    @djramboholidaylights 3 роки тому +174

    After hearing about amc on dark pools.. the last 45 seconds of this video is priceless

    • @katkane7448
      @katkane7448 3 роки тому +21

      Good to see others gathering to learn for similar reasons. Keep digging!

    • @Shometsuwu
      @Shometsuwu 3 роки тому +14

      Ah, fellow wrinkle growers🦍💎

    • @martinithechobit
      @martinithechobit 3 роки тому +13

      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.

    • @ekuryluk
      @ekuryluk 3 роки тому +25

      Here because I’m not selling AMC. Anyone else?

    • @truepatriot2797
      @truepatriot2797 3 роки тому +10

      @@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.

  • @BasetHamza
    @BasetHamza 3 роки тому +24

    Here because of AMC, excellent explanation. Thank you!

  • @kennethclass
    @kennethclass 3 роки тому +41

    Doing some DD on AMC 🦍🚀💎🙌🏾

    • @CusomPCs
      @CusomPCs 2 роки тому

      Have you figured out that it's a shit company with shit leadership yet? GME or bust.

  • @Shometsuwu
    @Shometsuwu 3 роки тому +44

    May you fellow wrinkle growers experience a banana bounty in the coming days🦍💎
    Edit: WE GOT SOME BOUNTY OOH OOH

  • @jericho123456
    @jericho123456 7 років тому +83

    I couldn't hold my giggle after I heard how traders in dark pool whisper to each other xD Thank you! It was very entertaining:)

  • @JB-nu5ih
    @JB-nu5ih 3 роки тому +31

    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.

  • @jgfunk
    @jgfunk 6 років тому +17

    Love these videos. The information is always explained in a clear and easy to understand manner.

  • @JuansAdventures
    @JuansAdventures 3 роки тому +27

    Apes together strong!

  • @aritragupta4182
    @aritragupta4182 5 днів тому

    Whoa-I remember binge-watching these around 2009-10, right after the GFC.
    Exciting times (for me) 😊

  • @learnanddeliver
    @learnanddeliver 13 років тому +1

    Exellent, very nicely explained. I came across dark pools in our one of our classes. Now I understand it very well. Thank you for the nice video

  • @cs2097
    @cs2097 2 роки тому +6

    secret ape hideout... they would never expect us hiding in their own dark pools building our own infinite one

  • @thecandyman9308
    @thecandyman9308 3 роки тому +3

    I accidentally clicked on this video b/c I've had tarry stool lately and I thought the title said "Dark Poo Explained". Now i'm day-trader.

  • @merrick8000
    @merrick8000 3 роки тому +18

    is this at all relevant to GME and AMC

    • @tinamunich3107
      @tinamunich3107 3 роки тому +3

      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.

  • @JohnDoe-fk3pp
    @JohnDoe-fk3pp 3 роки тому +3

    hmm love how this pops up in my feed as we approach the MOASS

  • @sandeshkshetri3867
    @sandeshkshetri3867 6 років тому +2

    Loved the explanation. Especially the marker drop!

  • @broodyking
    @broodyking 3 роки тому +4

    “leave you needing a very large drink” god I felt that 🍻 hope you’re doing alright 11yrs later

  • @nguyenpham6595
    @nguyenpham6595 Місяць тому

    Investment book brought me here!!!!❤ thanks you very much

  • @samArty123
    @samArty123 14 років тому +1

    THANKS for the great videos Hirsch

  • @jklfghjkl
    @jklfghjkl 5 років тому

    Great explanation.
    An eye opening video on the privileges of big investors.

  • @MatteoCeccarini
    @MatteoCeccarini 2 роки тому +1

    A very clear explanation, thank you!

  • @ManuelWillCom
    @ManuelWillCom 15 років тому +6

    wow i gotta find out more about this...
    great vid again

  • @daemonzap1481
    @daemonzap1481 3 роки тому +25

    POV: You've been reccomended this after losing nearly half your money to hedge funds.

    • @kilier8586
      @kilier8586 3 роки тому

      POV:Only lost profit if u bought a $3

    • @Chitownprince83
      @Chitownprince83 3 роки тому +7

      POV: You only lose if you sell 😉
      💎🙌🦍🚀🌙 🍿

    • @matapangguy3331
      @matapangguy3331 3 роки тому +4

      I’ve lost nothing I’ve gained EVERYTHING

    • @mariomartinez8645
      @mariomartinez8645 2 роки тому +1

      This aged well

  • @lulualtuwaijri5422
    @lulualtuwaijri5422 3 місяці тому

    thank you! You made it CLEAR

  • @ginnymonroe4918
    @ginnymonroe4918 5 років тому +2

    Hi Paddy Hirsch, thanks for this I was R&Ding "dark pools" for a story. Thanks Ginny Monroe

    • @anselon7
      @anselon7 5 років тому

      will darkpool trade affect Uber stock tomorrow am ??

  • @bullishbearstrading
    @bullishbearstrading 4 роки тому

    Very good explanation!

  • @emmanuelibus
    @emmanuelibus Рік тому +4

    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.

  • @bohemiancasanova5538
    @bohemiancasanova5538 Рік тому

    Great explanation, thank you

  • @damon9863
    @damon9863 3 роки тому +9

    Sam is clearly the ancient sea monster with a neck like that.

    • @8djd
      @8djd 3 роки тому +1

      Its so he can pop his head out the water to take a breath of air

  • @vinsontran1070
    @vinsontran1070 3 роки тому +6

    BUY AND HOLD AMC

  • @gregortidholm
    @gregortidholm 3 роки тому

    great explanation!

  • @byGioh
    @byGioh 3 роки тому +6

    AMC gang

  • @barbobrien9318
    @barbobrien9318 4 місяці тому

    Well done.

  • @shaylo2006
    @shaylo2006 15 років тому +1

    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?

  • @oskamandala8542
    @oskamandala8542 2 роки тому +1

    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.

  • @katrije1665
    @katrije1665 2 роки тому +1

    About to take an exam concerning this topic. Thank you so so so much for explaining!!!

  • @RedondoBeach2
    @RedondoBeach2 5 років тому +1

    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.

  • @juansaucedo4366
    @juansaucedo4366 3 роки тому +5

    #AMCGANG

  • @pacificnorthwest768
    @pacificnorthwest768 3 роки тому +5

    Ape grow small line in brain from this dr. professor.

  • @cosmosgato
    @cosmosgato 15 років тому +3

    Transparency is always (often) a very good rule.

  • @Meginnis31
    @Meginnis31 4 роки тому

    Does the size pop up on time and sales? And would it pop up all in one? Or multiples

  • @emresarican9315
    @emresarican9315 3 роки тому +1

    Lol man i really loved your presentation. thank you :)

  • @RBmusic2000
    @RBmusic2000 2 роки тому

    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.

  • @Vlbhk91
    @Vlbhk91 2 роки тому +1

    Xspa has a lot of Dark pool, those shorts need to cover Monday

  • @JB-yf9dv
    @JB-yf9dv 3 роки тому +5

    Great vid, whispering part had me creased lol. #AMC

  • @scottoswald7535
    @scottoswald7535 3 роки тому +3

    GME brought me here!

  • @NotMitch69
    @NotMitch69 7 місяців тому

    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.

  • @pauldiam0nd
    @pauldiam0nd 2 роки тому

    It's like the TOR or CRYPTO for exchanges/brokers ...?

  • @jesusflores3290
    @jesusflores3290 3 роки тому +6

    #AMC

  • @Meginnis31
    @Meginnis31 4 роки тому

    Does the size pop up on time and sales?

  • @kevtherev8194
    @kevtherev8194 5 років тому +6

    It seems he was speaking from experience (throw the pen down) about needing a Very Large drink

  • @ashleyisachild
    @ashleyisachild 3 роки тому +12

    Wow so 11 years ago, the SEC toyed with the idea of regulating the one thing that was preventing the stock market from being egalitarian. Thanks SEC.

    • @partsshooter
      @partsshooter 2 роки тому

      Seem like things only get worst

  • @DCUPtoejuice
    @DCUPtoejuice 12 років тому

    outstanding

  • @rataflaca1
    @rataflaca1 3 роки тому

    what is the difference between dark pools and blocktrades(blockhouse)?

  • @zaNE-vu5lc
    @zaNE-vu5lc 3 роки тому

    thank you

  • @pradeepkumar-ew1ze
    @pradeepkumar-ew1ze Рік тому +1

    How thier demat account is updated, if the exchange is not involved 🤔

  • @cryptopathfinder4536
    @cryptopathfinder4536 3 роки тому

    does the hf's have to expose the trade publicly the same day? or they have time? this same method is done with short sales?

  • @stozies1221
    @stozies1221 3 роки тому

    Love to see there are people of culture here.

  • @romario5080
    @romario5080 2 роки тому +1

    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

  • @InventaChris
    @InventaChris 11 місяців тому

    What's the minimum amount needed for individual traders & investors to trade in dark pools?

  • @JustAnotherHuman33
    @JustAnotherHuman33 3 роки тому

    So basically it's like a private sale off and buy? So the public stock market won't be able to interact with this private Trade?

  • @kevtron
    @kevtron 3 роки тому +1

    Even if the two firms are private, the trades are still printed to the tape, just after a delay. No trade can happen without it being known

  • @wilkinsune
    @wilkinsune 2 роки тому +1

    This video is 12 years old. Not a lot was done about Dark pools since.

  • @kingtigercrownestate9102
    @kingtigercrownestate9102 2 роки тому

    What is the advantage that people get by using dark pools?
    I am still not totally clear on that?

  • @Jewiceee
    @Jewiceee 3 роки тому

    Learning!!!

  • @abhishekadhikari4965
    @abhishekadhikari4965 3 роки тому +2

    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?

    • @HoLeeFuk69
      @HoLeeFuk69 3 роки тому

      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.

  • @evoii323
    @evoii323 3 роки тому +1

    Lol this was very informative, and funny 2:25

  • @patalwell
    @patalwell 7 років тому +9

    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.

    • @erikbeier9515
      @erikbeier9515 4 роки тому +1

      “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.

    • @LatinDanceVideos
      @LatinDanceVideos 2 роки тому

      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

  • @chioptnstdr3448
    @chioptnstdr3448 3 роки тому +2

    What’s up AMC family

  • @dantothemoon9154
    @dantothemoon9154 2 роки тому +2

    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

  • @JEli11
    @JEli11 Рік тому

    So dark pool trades don't show in the price charts?

  • @akashicmelanin
    @akashicmelanin 21 день тому

    14 years ago, advertised for a few years, interesting how things connect

  • @DrKumkar
    @DrKumkar 3 роки тому +3

    I too seek knowledge on my quest

  • @chicotata
    @chicotata 2 роки тому

    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 🙈

  • @cadehaak
    @cadehaak 3 роки тому

    i was your 100,000th viewer

  • @jaydavidson4592
    @jaydavidson4592 3 роки тому +4

    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

    • @themiseducationoftheameric7407
      @themiseducationoftheameric7407 2 роки тому

      Great question

    • @partylouis9851
      @partylouis9851 2 роки тому

      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.

  • @Mark_Chandler
    @Mark_Chandler 2 роки тому

    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.

  • @kevcleveland6885
    @kevcleveland6885 3 роки тому

    PROFESSOR 👍

  • @Tree0fLife
    @Tree0fLife 4 роки тому +1

    just finished watching my 2nd video of yours. is it always the case that at the end the subject is always in need of a large drink? 😂

  • @bitwise7123
    @bitwise7123 3 роки тому +2

    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.

  • @kingslots3449
    @kingslots3449 2 роки тому

    I could understand this LoL 🤣🤣.. Thank you.

  • @tylersawyer8677
    @tylersawyer8677 9 років тому

    How is the price computed within the dark pool? Does the dark pool itself establish a bid/ask? If not, how do potential buyers and sellers know what is being offered in the dark pool if they can't "see" each other?

    • @AirelonTrading
      @AirelonTrading 9 років тому +1

      It still goes to the SIPS feed for the fill

    • @myles5158
      @myles5158 4 роки тому

      @@AirelonTrading what is SIPS?

  • @kalpesh0
    @kalpesh0 6 років тому

    But they also help in not breaking the technical patterns...

  • @MrPikachu53
    @MrPikachu53 2 роки тому +1

    SEC: Doesnt give a shit about dark pools
    ALso the SEC: Crypto?? Wait thats illegal.

  • @emmanuelabuluyan6765
    @emmanuelabuluyan6765 3 роки тому +1

    amc comunity is here . brothers and sisters with 💎👐

  • @richunclejoey2249
    @richunclejoey2249 Рік тому

    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

  • @jokur8935
    @jokur8935 9 років тому +1

    very cool very swag i like it

  • @iFight732
    @iFight732 9 років тому

    How is it that a private investor like myself can monitor dark pool activity?

  • @ryans3001
    @ryans3001 3 роки тому

    yes, yes, this is good

  • @stupidminotaur9735
    @stupidminotaur9735 2 роки тому +1

    Glenn Beck brought me here. 2021

  • @blues4never
    @blues4never 14 років тому +1

    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.

    • @LatinDanceVideos
      @LatinDanceVideos 2 роки тому

      Front running & odd lot executions needs more explanation.

  • @oscarvillasana209
    @oscarvillasana209 3 роки тому +1

    How is this legal

  • @ashishlanje2717
    @ashishlanje2717 3 роки тому

    can i see that trade in tape?

  • @user-bd7ul5bi5x
    @user-bd7ul5bi5x 4 роки тому +1

    is this video 10 years ago?

  • @alexm566
    @alexm566 3 роки тому

    The problem is the HFTs which ruined it for the regular investors. I don't blame the big guys for finding a way out of this madness.