Block trading is not included in the index calculation, so it has no effect on the index of the day. The more shares traded by major shareholders, the more obvious signs of buying will make stocks rise. Block trade, also known as block trade. Generally speaking, it refers to the transaction scale, including the number and amount of transactions, which is very large, far exceeding the average transaction scale of the market. Specifically, each exchange has a clear definition of block trade in its trading system or in its commodity trading system, and they are different. Because block trading has the characteristics of not directly impacting the stock price and the purpose of trading is relatively hidden, this influence is more reflected in indirect influence or lagging influence. There is nothing wrong with block trading of stocks. Most of the buyers of block trading are speculators, that is, bankers. It is sometimes difficult for them to raise funds in the normal secondary market. Usually, the cost of raising funds is very high, so it is relatively simple to raise funds in the block trading market, and there are discounts. Of course, they won't lose money if they buy it, so there will always be a strong upward trend. Stock commodity trading system block trading is aimed at a large number of securities transactions.
First, the price fluctuates greatly. Only when commodity prices fluctuate greatly, traders who want to avoid price risks need to use forward prices to determine prices first. Second, the supply and demand are large. The function of the futures market is based on the premise that both the supply and demand sides of commodities participate in transactions extensively. Only goods with large spot supply and demand can fully compete in a wide range and form authoritative prices. Ningxia Jindao Commodity Management Co., Ltd. deals in precious metals, energy chemicals and agricultural products, and provides trading, settlement, spot delivery (and repurchase) and financial investment consulting services.
Third, it is easy to classify and standardize. The quality standard of delivery is stipulated in the futures contract in advance. Therefore, futures varieties must be commodities with stable quality, otherwise it is difficult to standardize.
The transaction price of a block trade is higher than the current share price, indicating that shareholders or institutional investors are optimistic about the stock and are eager to buy it at a price higher than the current price, which is a kind of bullish news. It will attract retail investors to follow suit and jointly promote the stock price rise. The higher the premium rate of block trades, the stronger the bullish signal, and the greater the rising probability of individual stocks.