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What Is the Risk of ‘Adverse Selection’ in a Dark Pool?

Adverse selection is the risk that a trader's order is disproportionately matched against more informed traders who possess superior market information. In a dark pool, where quotes are not displayed, an uninformed trader may unknowingly execute a trade at a price that is immediately disadvantageous, as the counterparty may be trading on non-public or superior knowledge.

How Does the Risk of “Adverse Selection” Affect a Market Maker’s Quoted Spread?
How Does ‘Information Asymmetry’ Create the Adverse Selection Component of the Bid-Offer Spread?
What Is the Concept of ‘Adverse Selection’ in Market Making and Slippage?
What Is the ‘Realized Spread’ and How Is It Used to Estimate the Adverse Selection Cost Component?