Tag: Institutional Order Block

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Institutional Order Blocks (IOBs) are a way for institutional investors to purchase large blocks of stocks and bonds with reduced transaction costs and more favorable terms than might be available to individual investors. IOBs bring together multiple buyers and sellers in a single transaction that can benefit both parties, providing the larger order size and stronger counterparty for liquidity providers. IOBs allow institutional investors to purchase stocks and bonds without impacting market prices, while providing liquidity providers with significant cash flows. Furthermore, IOBs reduce execution times and risk, and make it easier for institutional investors to facilitate large orders without exposing themselves to the volatility of the markets.