What Role Does the ‘Dark Pool’ Concept Play in Reducing Front-Running Risk for Large Crypto Trades?
A dark pool is a private forum for trading securities or crypto that is not accessible to the public. It allows institutional investors to place large orders without publicly revealing their intentions, which prevents others from front-running or manipulating the price.
Trades executed in a dark pool are only reported after the fact. This opacity significantly reduces the risk of market impact and front-running for block trades.