- Item type
- eBook
- Source
- Dark Pools : The Structure and Future of Off-Exchange Trading and Liquidity. :115-135
- Publication year
- 2010
- Contributors
- ISBN
- 9781349315284
In continuing with our micro themes, we turn our attention from pricing and execution to trading. The visible and dark markets must be seen as a compendium of individual, sometimes competing, trading strategies. This means that the performance of any one strategy affects all others—there is a mutual dependency and relationship. Performance of such strategies is also market-dependent: a quiet and thinly traded market may favor certain approaches, while a fast market with heavy volume may favor others. The most sophisticated players use this knowledge to adjust their trading strategies accordingly. They also consider very carefully where strategies can be executed to greatest effect—in the lit markets, the dark markets, or some combination of the two.
