# Dark Pool

*Trading & Technical Analysis — Finicade finance glossary*

A dark pool is a private venue where large orders trade without displaying to the public book, so institutions can build positions without signalling.

A dark pool is a private venue where large orders trade without displaying to the public book, so a big institution can build a position without signalling it and moving the price. Around 40% of US equity volume now trades off-exchange. The criticism is price discovery: when a large share of trading is invisible, the public quote reflects less of what is actually happening.

**Also known as:** dark pools, ATS, alternative trading system

**Related terms:** [Order Book](https://finicade.com/glossary/order-book), [High-Frequency Trading](https://finicade.com/glossary/high-frequency-trading), [Best Execution](https://finicade.com/glossary/best-execution), [Market Maker](https://finicade.com/glossary/market-maker), [Liquidity](https://finicade.com/glossary/liquidity)

Source: https://finicade.com/glossary/dark-pool