Kraken, a San Francisco-based Bitcoin exchange, is please to introduce the Kraken dark pool for bitcoin trading, a new feature that allows clients to discreetly place large bitcoin orders and execute against similar sized orders at potentially better prices.
The Kraken dark pool is an order book not visible to the rest of the market. Each trader only knows their own orders. Traders can anonymously place large buy or sell orders without revealing their interest to other traders. Typically, outsized orders, when seen by other traders will cause the market to move unfavorably, making it more difficult to fill the order at the desired price. This unfavorable price movement may be avoided in a dark pool.
Kraken will charge an extra 0.1% for dark orders. Dark pool trading is available to all Kraken clients with accounts verified to Tier 2 or higher (for information on the account tiers click here). The minimum dark order size is 50 bitcoins and only limit orders are supported. The dark pool will accept orders for trading between bitcoins and EUR, USD, JPY or GBP. Dark pool pairings are designated by a “.d” extension (e.g. XBT/EUR.d or XBT/USD.d).