Dark pools and high-frequency trading - Finance Not Taught In School

Dark pools and high-frequency trading (HFT), often not taught in school, are significant elements in modern finance. Dark pools are private exchanges for trading securities, allowing investors to make large trades anonymously to avoid market impact.

HFT involves using complex algorithms and high-speed data networks to execute trades in fractions of a second, capitalizing on small price discrepancies. While both aim to enhance liquidity and efficiency, they have sparked concerns over market transparency, fairness, and stability. Critics argue that these practices can advantage sophisticated traders over average investors and potentially lead to market manipulation and flash crashes.

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