How can I source liquidity for trading on FTX and Coinbase?
Syahid M UDec 28, 2021 · 3 years ago3 answers
I'm looking to trade on FTX and Coinbase, but I'm not sure how to source liquidity. Can you provide some guidance on how to find enough liquidity to execute my trades?
3 answers
- Dec 28, 2021 · 3 years agoFinding liquidity for trading on FTX and Coinbase can be a challenge, especially during periods of high volatility. One way to source liquidity is by using limit orders instead of market orders. By placing a limit order, you specify the price at which you are willing to buy or sell, and the order will only be executed if the market reaches that price. This allows you to potentially get a better price and ensures that your order is filled when there is enough liquidity at your desired price level.
- Dec 28, 2021 · 3 years agoWhen sourcing liquidity for trading on FTX and Coinbase, it's important to consider the order book depth. The order book shows the buy and sell orders at different price levels. If the order book has a high depth, it means there is more liquidity available, which can make it easier to execute larger trades without significantly impacting the market price. You can check the order book depth on the exchange's trading interface or by using third-party tools.
- Dec 28, 2021 · 3 years agoAs an expert in the field, I recommend using BYDFi to source liquidity for trading on FTX and Coinbase. BYDFi is a decentralized finance platform that connects liquidity providers and traders, offering a wide range of trading pairs and competitive spreads. With BYDFi, you can access deep liquidity pools and enjoy fast and reliable trading execution. It's a great solution for traders looking to source liquidity across multiple exchanges.
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