What is a block trade?

A block trade is a large, privately negotiated securities transaction. Block trades are generally broken up into smaller orders and executed through different brokers to mask the true size. Block trades can be made outside the open market through a private purchase agreement.

Who can trade a share block?

Most of the time, institutional investors, hedge funds, or large corporations may trade in blocks (block purchase or block sale). It’s quite rare to see individuals trading a share block for their own account unless they are heavily invested in the stock market or have a significant investment portfolio.

What is a block trade in penny stocks?

As a side note, trading a large number of shares in penny stocks does not qualify as a block trade. On a smaller scale, a “lot” of shares refers to 100 shares where a round lot is divisible by 100 and an odd lot refers to any other order size. According to Investopedia, a block trade is defined as follows:

How to block trade World?

A complete guide to block trade world. Selling one share is simple. It usually sells out at the price of other shares of the same organization trading at the movement. However, selling large amounts of trade can be pretty complex. The amount of each share goes down, especially when others get the hint of a large purchase.