Table Of ContentIntroduction 1 Part I: Getting Started with Dark Pools 5 Chapter 1: Focusing on Dark Pools and High Frequency Trading, Just the Basics 7 Chapter 2: Taking a Dip into Dark Pools 15 Chapter 3: Grappling with the Ins and Outs of Securities Markets 25 Part II: Diving into Dark Pool Markets 37 Chapter 4: Introducing Dark Pool Providers 39 Chapter 5: Meeting the Players and Places 53 Chapter 6: Regulating Dark Pools 65 Part III: Coming to Grips with Automated Trading 77 Chapter 7: Comprehending Automated Trading 79 Chapter 8: Grasping Standard Order Types 93 Chapter 9: Identifying the Special Order Types 105 Chapter 10: Delving into High Frequency Trading 119 Chapter 11: Understanding Key High Frequency Trading Strategies 133 Part IV: Being Aware of the Risks of Dark Pools 147 Chapter 12: Jockeying Too Much for Position 149 Chapter 13: The Ins and Outs of Flash Crashes 163 Part V: The Part of Tens 181 Chapter 14: Ten of the Best Dark Pool/HFT Websites 183 Chapter 15: Ten Ways to Swim Safely in Dark Pools 191 Chapter 16: Ten Common Algorithmic Strategies 199 Chapter 17: Ten Things to Know About Market Microstructure 207 Index 215
SynopsisLearn about: The different types of dark pools and who can trade in them How a typical dark pool transaction works The rewards and risks of dark pools The basics of automated and high frequency trading Your plain-English guide to high-frequency trading and off-exchange trading practices This is your one-stop, all-encompassing and indispensable guide to what really goes on inside dark pools, what rewards you can reap as an investor and how wider stock markets and pricing may be affected by dark pools. Written in an easy-to-follow manner that makes the subject accessible to all, this guide gives you a true insider s look into the topic. See in the dark get up-to-speed on dark pool basics, understand the difference between dark pools and lit markets and find out how they came to be and just how large the current dark pool market is Meet the major players discover the different kinds of entities that make dark pools function, from those who make the market to those who trade in it All about automated trading find out the role automated computer trading plays in dark pools and how it s used by traditional market makers, traders and institutions to execute large orders No diving be aware of the risks of dark pools, from the hazards of too much jockeying for position to the many ways in which you can get burned with flash crashes Open the book and find: How a securities market functions Tips for spotting a market predator The main dark pools out there today Ways dark pools are regulated The best dark pool/HFT websites out there Ways to spot if you ve been dark-pooled or HFT d, A plain English guide to high frequency trading and off-exchange trading practices In Dark Pools & High Frequency Trading For Dummies , senior private banker Jukka Vaananen has created an indispensable and friendly guide to what really goes on inside dark pools, what rewards you can reap as an investor and how wider stock markets and pricing may be affected by dark pools. Written with the classic For Dummies style that has become a hallmark of the brand, Vaananen makes this complex material easy to understand with an insider's look into the topic. The book takes a detailed look at the pros and the cons of trading in dark pools, and how this type of trading differs from more traditional routes. It also examines how dark pools are currently regulated, and how the regulatory landscape may be changing. Learn what types of dark pools exist, and how a typical transaction works Discover the rules and regulations for dark pools, and some of the downsides to trading Explore how dark pools can benefit investors and banks, and who can trade in them Recognize the ins and outs of automated and high frequency trading Because dark pools allow companies to trade stocks anonymously and away from the public exchange, they are not subject to the peaks and troughs of the stock market, and have only recently begun to take off in a big way. Written with investors and finance students in mind, Dark Pools & High Frequency Trading For Dummies is the ultimate reference guide for anyone looking to understand dark pools and dark liquidity, including the different order types and key HFT strategies.