Trading & Market Structure
Block Trade
Definition
What is Block Trade?
A transaction involving a large quantity of securities, often negotiated away from the public order bookA record of outstanding buy and sell orders arranged by price and often time priority..
Example in practice
How This Looks in Practice
An institution sells a 5% stake through a block trade.
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Related Terms
Trading & Market Structure
Bid
The highest price a buyer is currently willing to pay for a security.
Trading & Market StructureAsk
The lowest price a seller is currently willing to accept for a security.
Trading & Market StructureBid-Ask Spread
The difference between the best available buying and selling prices.
Order TypesMarket Order
An instruction to buy or sell immediately at the best available prices.