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Block Trader
(redirected from Block Traders)

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Block trader
A dealer who will take a position in the block trades to accommodate customer buyers and sellers of blocks. See: Dealer, market maker, principal.

Block Trader
A dealer who buys and sells large blocks of securities, usually more than 10,000 shares or $200,000 in value at a time.


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It's the successor to the brokerage work that used to keep block traders busy decades ago, when the NYSE ruled Wall Street but a fair amount of its trading took place upstairs.
It allows block traders whose priorities are minimizing market impact and costs to use a mix of active limit orders, dark pools, and market sweeps in order to minimize spreads, to maximize rebates, and to effect market prices as little as possible.
Controversy has arisen because many block traders would prefer to execute their trades automatically at inferior prices immediately if they can execute a trade that covers their entire block.
 
 
 
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