Kevin Hall

What is Block trade and how does it work

What does a block trade mean? Block trade involves two parties who trade a considerably large number of bonds and equity at a pre-decided price. Many times, investors choose to carry out such trades in order to be safe from price cuts as this allows them to reach a consensus on the price that works in the favour of the seller. Typically block trades are organized separately from the public markets so that the impact on the security’s price is low.