Kraken Launches Dark Pool Trading
Kraken has introduced dark pool trading, allowing traders to place large orders without revealing interest to other market participants.
Cryptocurrency exchange Kraken has introduced dark pool trading, allowing traders to place large orders without revealing their interest to other market participants.
The feature will allow traders with large orders to potentially get better pricing than if their interest was visible.
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In its announcement, Kraken says it is one of only a few bitcoin exchanges to offer such functionality. Specialized order books appended with “.d”, e.g. “XBT/USD.d”, allow for the placement of such orders. The feature is only available for limit orders. Customers who have completed Tier 2 verification requirements (provided their address), allowing them to deposit, withdraw and trade in fiat, are eligible for the feature.
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A minimum order size equal to 50 bitcoins (roughly $11,500) is required to use the feature.
An additional 0.1% fee is charged for such orders upon execution.
Kraken has continued to upgrade its platform, focusing on high stakes traders. Recently, it introduced margin trading, with initial leverage at 3:1, but a possible increase to 10:1 or higher in the future.
Any reason why only limit orders would apply here? does the dark pool mix with the ‘regular’ pool for the limit orders to be filled?
It is not relevant for market orders, which are executed immediately at the best available price. Only limit orders populate the order book. For stop orders (if relevant), I would imagine these are managed by the software before they get to market, and the stop-limit variety would populate a limit order once the stop is triggered.
The dark pool is just a way of entering orders, but in the end, all are mixed.
Any reason why only limit orders would apply here? does the dark pool mix with the ‘regular’ pool for the limit orders to be filled?
It is not relevant for market orders, which are executed immediately at the best available price. Only limit orders populate the order book. For stop orders (if relevant), I would imagine these are managed by the software before they get to market, and the stop-limit variety would populate a limit order once the stop is triggered.
The dark pool is just a way of entering orders, but in the end, all are mixed.