Definition
A block trade is a large transaction of shares that is bought or sold in a single deal. It usually involves a large number of shares and is often done by big investors such as institutions, mutual funds, or large traders.
Example
If an investor buys or sells 1 lakh or more shares of a company in one transaction, it is considered a block trade. These trades are usually executed separately from normal market trades to avoid big price changes.
Caution
Block trades can sometimes affect the stock price because of their large size. However, not all block trades indicate a clear trend, so investors should not rely only on this information before making decisions.