What Is a Cross Trade?

Cross trading of stocks refers to the method of buying and selling of the same securities company at the same time, which makes the transaction established in the exchange market. The cross company of a securities company is based on the premise of block trading. When there is a block sell (or buy), a suitable buyer (or seller) is found in advance, and it is put on the market at the same time to make the transaction set up. When a large transaction (such as 1 million shares or 2 million shares) will be launched in the stock market, the large amount may cause fluctuations in the stock market price, which may cause the transaction price to exceed expectations. In order to avoid this situation, cross transactions are generally used, so cross transactions are also called "bulk relative transactions". Cross trading is based on bulk trading. Therefore, there are few cases of individual investors participating. Most of them are institutional investors such as corporate companies, banks, and trust and investment companies. Therefore, it can be said that the frequency of cross trading is an observation of institutional investment. A barometer of the movement of the person.