Bulk Deals vs. Block Deals: Understanding the Differences
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December 23, 2025
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Introduction
In the world of stock market trading, institutional investors, mutual funds and other large investors typically buy and sell large amounts of stock in large volumes. Both Bulk and Block Deals fall into a category of transactions called Bulk and Block Transactions respectively and are two important terms for traders and Investors trying to read the Signals of the Market accurately.
In this article, we will describe Bulk vs Block deals along with their features and key differences, so Retail Traders have an understanding of these two transactions to make informed trading decisions.
What Is Bulk Deals?
When a trader buys or sells more than 0.5% of a company’s entire equity shares during the same trading session of the Share Market, then they are involved in a Bulk Deal.
Key Features of Bulk Deals:
- Normal market trading hours (during the week)
- Multiple transactions are possible
- At least 0.5% must be traded on the same Day
- All Transactions will be reported to the Exchange at the end of the Trading Session.
Most of the time, Bulk Deals reflect major institutional investor interest and have short term implications on the price movement of stocks.
What are Block Deals?
A Block Deal refers to a single transaction in which shares worth ten crore rupees or more are exchanged between two Traders on the same order.
Key Features Block Deals:
- Â Special trading window.
- Â Single Transaction.
-  Minimum value of ₹10 Crores.
- Â Immediately Reported to the Exchange.
Block deals allow producers to hedge risk against fluctuations in their underlying assets. Most block deals are negotiated ahead of time, thereby reducing overall market volatility.
Bulk Deals vs. Block Deals: Key Differences
Feature | Bulk Deal | Block Deal |
Minimum Criteria | 0.5% of total equity | ₹10 crore or more |
Execution | Multiple trades possible | Single trade only |
Timing | Normal market hours | Special trading window |
Disclosure | End of trading day | Immediate disclosure |
Market Impact | Can affect price movement | Limited price impact |
Why Should Traders Track Bulk & Block Deals?
By keeping track of these transactions, traders can:
- Â Recognize when an institution has shown an interest in a particular asset
- Â Discover possible market reversal patterns
- Â Validate how a market may be feeling about Bullish (Bullish) or Bearish (Bearish) sentiment
- Â Enable improved entry and exit decisions for traders.
Bulk and Block Deals is an important confirmation tool for many professional traders, but not a full-fledged trading strategy.
How Retail Traders Can Use This Information
Retail traders need to:
- Â Utilize both bulk/block deal activity with Technical (Charting) Analysis
- Â Monitor for repeated buying/selling habits from institutions
- Â Avoid blindly copying institutional trading strategies
- Â Follow Volume, Price Action and Fundamental Analysis.
Learning to read these types of data is essential for every trader looking to build a professional trading style and is taught by the best Forex Trading Schools in Malappuram.
Utilizing Bulk & Block Deals in Forex Trading
Bulk and Block deal activity are primarily utilized in Equities (Stock) Markets; however, by understanding what institutions do in Forex Markets, we can benefit from their influence on liquidity and volatility, which are key components taught at the premier Forex Trading Schools in Malappuram.
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Conclusion
Traders can gain a lot of insight into how institutions are trading stocks by looking at Bulk Deals and Block Deals. A bulk deal is simply a massive amount of trades completing over the course of the day that are considered “bulk” because they collectively add up to a lot of shares being sold, while block deals are simply an agreement between two parties where everything involved in the transaction has already been negotiated in advance. Therefore, learning how to read and analyse the bulk deals along with your technical and fundamental analyses will help you make much better-informed trading decisions.
Enrolling in a professional education course at the best trading institute in Malappuram and the best forex trading institute in Malappuram would help you become an expert in stock and forex trading concepts such as this, and give you the advantage needed to compete in today’s fast-paced market.
