What is the amount of block trade?

The block trade mechanism is designed to facilitate the transfer of significant amounts of securities or commodities in a single transaction. It offers institutional investors and high-net-worth individuals the opportunity to execute their trades without significantly impacting market prices.

In the realm of finance, a block trade represents a substantial transaction that involves either a minimum quantity of 500,000 units or a value exceeding Rs. 5 crores. This type of trade is executed through a dedicated window known as the Block Deal window.

The Block Deal window operates within a specific 35-minute timeframe, commencing at 9.15 am and concluding at 9.50 am. This designated period allows for the efficient execution of large-scale trades without disrupting the normal flow of the market.

One of the key advantages of block trades is the anonymity it provides to both buyers and sellers. This anonymity helps protect their trading strategies and positions from being exploited by market participants.

Additionally, block trades often involve negotiations between the parties involved, allowing for more flexibility in terms of pricing and execution. This can lead to more favorable outcomes for both sides of the trade.