Block Trade
A block trade is a large buy or sell order for a stock, commodity, or other security, typically conducted by institutional investors like hedge funds, mutual funds, or pension funds. These trades are used to mask the true size of the transaction to avoid market disruption or unfavorable price movements. The price of the security is privately negotiated between the buyer and seller. Block trades are usually routed through investment banks and executed outside of conventional exchanges to ensure a smooth, discreet transaction without affecting the broader market.
Related Terms
American Option
An American Option grants its holder the flexibility to exercise the contract at any point...
Equity Market
The equity market is where shares are traded, capital is raised, and stocks are offered,...
Deferred Tax Asset
Deferred tax Asset in financial statements denotes future tax assets stemming from temporary differences.This arises...
Delivery Trading
Delivery trading involves buying/selling a security and settling it by taking/giving delivery. Unlike intraday trading,...
All Or None Order
An all-or-none (AON) order is an instruction to execute a trade only if the full...
Margin Funding
Margin funding, offered by brokers, lets traders borrow funds to enhance their purchasing power in...
