What does block trading mean in the stock market? Block trading is also called block trading. Generally, it refers to the transaction size, including the number and amount of transactions, which are very large, far exceeding the average transaction size of the market. Specifically, each exchange has a clear definition of block trading in its trading system or in its block trading system, and they are different.
Block trading is also called block trading. Block trading is aimed at a large amount of securities trading. The trading volume, transaction price of each block transaction and the separate announcement by the buyer and seller after the closing of the day also need to understand that the block transaction is not included in the index calculation, so it has no impact on the index of the day. The larger the number of shares traded by major shareholders, the obvious signs of buying will cause the stock to rise.
What does it mean to have a block trade in stocks? Most of the stocks on the block trading list are rising in the next few days, and many of them are rising violently. It can be understood that most of the buyers of block trades are speculators, which is often referred to as dealers. It is sometimes difficult for them to attract funds in the normal secondary market. Usually, the cost of attracting funds is very high, so it is relatively simple to attract funds in the block trading market, with discounts. Of course, it is not to lose money, so there is often a strong upward trend in the trend.
The minimum limit of block trading in each exchange is different:
1、 Provisions of Shanghai Stock Exchange:
1. The number of A shares declared for a single transaction is more than 300000 shares (inclusive), or the transaction amount is more than 2 million yuan (inclusive); The number of B shares (Shanghai) declared for a single transaction is more than 300000 shares (inclusive), or the transaction amount is more than 200000 dollars (inclusive);
2. The number of single transaction orders for fund block transactions is more than 2 million, or the transaction amount is more than 2 million yuan (including);
3. The number of single purchase and sale orders of treasury bonds and bond repo block transactions is more than 10000 (inclusive), or the transaction amount is more than 10 million yuan (inclusive).
4. The number of other bonds declared for a single transaction is more than 1000 (inclusive), or the transaction amount is more than 1 million yuan (inclusive).
2、 Regulations of Shenzhen Stock Exchange:
1. The number of A shares in a single transaction is not less than 300000 shares, or the transaction amount is not less than 2 million yuan;
2. The number of B shares in a single transaction is not less than 30000 shares, or the transaction amount is not less than 200000 Hong Kong dollars;
3. The number of single transaction of the Fund shall not be less than 2 million, or the transaction amount shall not be less than 2 million yuan;
4. The number of bonds in a single transaction shall not be less than 5000, or the transaction amount shall not be less than 500000 yuan.
For individual stocks with block trades, some shareholders also select stocks based on this data, believing that there will be a greater probability of rising in the future market. The reason for this idea is that the two sides of the block trade account for a large proportion. Many of them are often said to be the makers. They are more difficult to attract funds in the secondary market, while the block trade is relatively simple. Buying is certainly not to lose money, and the market tends to rise in the future.
How much does block trading affect stock prices? From past experience, both bad news and good news are highly likely to affect stock price changes in the short term. There is no significant impact on stock price trend changes. Stock price changes are the result of the trend changes of the entire stock or market traders. Whether there is a block trade or not, the stock price will inevitably fall after a long-term rise, and vice versa. In a word, block trading will have a short-term impact on stock prices, and stock trading cannot be conducted based on this data alone.
