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Huge Volume no Price Change

  #8 (permalink)

Chicago, IL
 
Trading Experience: Intermediate
Platform: SierraChart
Favorite Futures: /ES /CL
 
Posts: 15 since Mar 2018
Thanks: 4 given, 20 received


Fr33B1rd View Post
Thanks for the reply guys. I think I will have to read up on how institutions move stock or futures. There's no way they can show their hands in the open market so they do the block and cross trades you guys mentioned. I just don't understand how the volume gets recorded if it's a private transaction between 2 institutions. I guess, how does the exchange find out the transaction occured and record the volume traded if it's a private transaction?

Sorry if these are bad questions but I've wanted to ask people this for ages

Usually this type of transaction can be executed on the trading floor (as an example or between a broker and a trader). They will agree on a price for a number of contracts lets say a block of 1k contracts at 1000 a contract, just an example. Once they agree respective buy/sell order is entered on the brokers side and is then filled and then the trader/buyer acquires the agreed number of contracts. Sometimes you can see delayed prints on Time and Sales i.e. 2k contracts at 1000 while the bid and ask spread is at 1000.25 and 1000.50, as the broker/trader agreed to that amount a few minutes/seconds beforehand.

--bofh

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