How Can a Large Trader Legitimately Execute a Block Trade without Triggering Manipulation Flags?

A large trader can execute a block trade legitimately by using methods designed to minimize market impact and avoid manipulative appearance. This often involves executing the trade through an Over-The-Counter (OTC) desk or a dark pool, or by using a sophisticated execution algorithm (like VWAP or TWAP) to slice the order into small pieces over a long period.

These methods ensure the trade is executed transparently and without creating artificial price movement.