Block Trade Large Scale Transactions Explained

4735 reads · Last updated: December 1, 2025

A block trade is a large-scale transaction of securities in the financial markets, typically involving a significant number of shares or bonds. Such trades are usually much larger than ordinary market transactions, often involving tens of thousands or more shares. Block trades are typically executed by institutional investors, such as hedge funds, pension funds, and insurance companies, who have the capacity to handle and absorb large transactions. Due to their size, block trades are often conducted in over-the-counter (OTC) markets to avoid causing substantial price movements in the public markets. These trades can be executed through brokers or specialized block trading platforms.

Suggested for You

Refresh