Dark pools are networks – usually private exchanges or forums – that enable institutional investors to buy and sell large amounts of stock without revealing the details of the transaction to the rest of the market. Dark pools are also known as dark pool liquidity or dark liquidity.
They were created as a means for large-scale investors to make deals with one another that would not result in a negative price movement against them.
If an investor wishes to sell a significant portion of a company's stock on a public exchange, they must declare their intention and risk the stock's value falling due to the increase in supply. Dark pools eliminate this risk by only announcing deals after they have occurred and restricting access to deals.

Dark pools are private trading venues where institutional investors buy and sell large blocks of securities anonymously, away from public exchanges. Created to minimize market impact, these platforms prevent price fluctuations that could occur if large trades were visible on open markets. Operated by banks, brokers, or independent firms, dark pools use alternative pricing mechanisms, often matching orders at midpoint prices.

While they offer liquidity and reduced transaction costs, critics argue they lack transparency, potentially disadvantaging retail investors. Regulatory scrutiny has increased due to concerns over unfair advantages and conflicts of interest. Despite controversies, dark pools remain a key part of modern financial markets, handling a significant share of global trading volume.