Anonymous Trading

In large trades when only the trade details are available and no information is available on the trader, the trade is called ‘Anonymous Trade’.

These are generally carried out by High Net Worth Individuals (HNIs) or large institutions who do not want to disclose their identity while buying or selling in stock markets. The facility is generally accorded to individual investors who are considered to be market movers in some sense. Their buying or selling can potentially cause the price to rise or go down as per the transaction and as per the prevailing market perception.

Who benefits from anonymous trading?

Anonymous trading works in the favor of large institutions or HNIs who do not want to impact the price of the stock before making a large deal. It benefits the small investors who are holding that stock as they would not take any action based on speculation.