OTC is an acronym for Over-The-Counter trading. OTC trading refers to trading of commodities and financial instruments outside a regulated exchange. It is a trade that is carried out directly by two parties which is usually between two traders or a retail trader and a provider. Most OTC trades are generally handled through a dealer network. Unlike formal exchanges which have lots of buy and sell orders publicly displayed on an order book, there are only two prices available for OTC trading – one buy order and one sell order. Many companies choose to offer their stock over the counter instead of on exchanges due to some strict requirements, thus they meet investors/trades who wish to buy and sell financial instruments at certain prices. To trade OTC, a brokerage firm is required who will work with available market makers to ensure a smooth deal.
Since cryptocurrencies are financial instruments, OTC trading can also be done with them. If you are an investor or trader who wants to buy a large amount of cryptocurrency without having to go through a cryptocurrency exchange, then OTC trading is the best choice. OTC trading is mainly for high volume traders or groups and are mostly placed by hedge funds institutions, high net-worth individuals or crypto projects that have just finished conducting their ICO.
Just like fiat OTC trading, digital currency OTC trades can be done through brokers who specialize in large transactions and offer large services. They execute large trades and help clients avoid slippage problems by going through liquidity traders that hold huge amounts of cryptocurrency. Cryptocurrency OTC trading can also be done through chat rooms that allow peer-to-peer transactions and through bitcoin ATMs where customers can convert fiat currency into digital currency without making use of an exchange.
Trading OTC offers better prices when compared to traditional exchanges. The crypto market is still very young and may not always have good liquidity available to process large trades. This affects market makers because large orders can easily influence other traders to set higher prices when they see a huge buy wall and since liquidity on these exchanges is not usually sufficient, the large orders get filled in smaller portions and at the end, the desired price is not achieved in a single buy order.
Most exchanges have minimum and maximum amounts users can trade per day as well as maximum amount of withdrawal per day. Withdrawal limits might depend on level of account verification in many cases. Considering this, OTC trading is a better option for large scale traders because there are no limits.
Sometimes, due to the trading volume available, large trade orders may take days to get filled but with OTC trading it is faster to make purchases. Every now and then we hear news about a crypto exchange hack and loss of user funds. This does not usually happen with OTC trading especially when you use the services of a trusted broker.
Basically, OTC trading facilitates large scale trading, helps you avoid slippage, protects you from risk of losing funds on an exchange and gives you faster deals.
Some of the factors to consider when choosing a broker are: What amount of liquidity do they provide? How much experience do they have? How much fees do they charge? Do the fees vary based on trade size or are they fixed? Do they require KYC/AML documents? How many cryptocurrencies do they offer? What security measures have they put in place to protect client funds?
Trade.io lets you deal directly with the dealing desk through phone, email, skype, telegram and whatsapp. How convenient! All you have to do as a Trade.io client is to ask for the price of the cryptocurrency you want to buy, quote and make your deal.
Trade.io has over 40 years experience in trading and risk management of various financial assets. Using Trade.io helps clients minimize slippage occurrences by using many liquidity sources and employing their experience in risk management.
Trade.io also helps control the method and duration of trade execution thereby providing faster trades and meeting with client demands based on market conditions. Trade.io also manages client orders based on their preference by using real-time information on market news, updates and technical levels. They also safeguard user data by maintaining confidentiality of client transactions.
Trade.io OTC desk uses a global network of counter parties to unite large scale trades of cryptocurrencies in order to reduce risks and sustain no market impact. Trade.io OTC services is commission-free on non-limit trades. In fewer words, Trade.io OTC services are great because:
· They allow direct OTC trading with the dealing desk
· They provide quick market settlement of trades the same day or next
· Large ticket matching
· Personal walkthrough and support every step of the way
· high liquidity through various institutional relationships
· Commission-free non-limit orders
· They offer a good number of top cryptocurrencies including BTC, ETH, ETC, REP, XMR, BCH, USDT, LTC, XLM, ZEC, DASH, EOS and GNO.
Trade.io is a cryptocurrency exchange that offers a wide range of financial services which include ICO consulting, liquidity pool, angel investment, affiliate and partnership program and OTC trading desk. They provide everything that you would want in an OTC dealing desk including a personal broker for support. They also have over 40 years of experience in trading and risk management hence they are equipped to assist you perform OTC trades. Trade.io also provide a lot of cryptocurrency options. To use Trade.io OTC services, simply register with this link
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