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What is 'Anonymous Trading'

[LuckyCogito9999]

What is 'Anonymous Trading' Anonymous trading occurs when high profile investors execute trades that are visible in an order book but do not reveal their identity. Many stock exchanges, such as the London Stock Exchange, Toronto Stock Exchange, and NASDAQ, as well as dark pools offer anonymous trading. While most traders choose to trade non-anonymously, there are many reasons that larger traders prefer to keep their participation in a market a secret. Anonymous trading is primarily used to avoid tipping off the market of a pending action, which could lead to front-running behavior, tracking of proprietary trading, or jockeying for the best position in an order book. For instance, a large institutional buyer that's interested in acquiring millions of shares may not want to make their intentions known before they can complete the purchase. The risk is that smaller investors could bid up the price hoping to sell it to the institutional buyer for a quick arbitrage profit, or pennying could be used to unfairly gain execution priority. Most anonymous trading is conducted by specialists and options market makers. Anonymous trades tend to be associated with a greater price impact, which suggests that those placing these orders are more informed than the average non-anonymous trader. I see plenty of accumulation by anonymous, mmmmm