Block Trades: What To Know And How To Trade Using Benzinga Pro

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What Are Block Trades? Block trades are equity transactions that occur in large volumes. Block trades can often signify institutional interest due to the hefty sum of money being moved in each trade, which can span into the millions of dollars. Savvy investors may realize which funds are doubling down or jumping ship on their positions based on supplemental research and follow suit.

Sometimes, block trades are even conducted outside of open markets to reduce the impact on the desired equity’s price. Institutions understand that open market trades can cause market fluctuations, which is why they may opt to trade through intermediaries known as blockhouses.

Capitalizing On Block Trade Activity with Benzinga Pro: Benzinga Pro offers traders the ability to monitor block trades to jump in on the action. Users can simply monitor the Newsfeed for block trade alerts as well as utilize the Signals function to filter specifically for block trades. Each alert will show the precise timestamp, ticker symbol and number of shares moved at what position.

Traders willing to pour a little extra time into understanding the entities responsible for block trades are positioned to benefit greatly from that information.