What are the advantages of using OTC trade agreements in the cryptocurrency industry?

1 answers

• Dec 26, 2021 · 3 years ago
  At BYDFi, we believe that OTC trade agreements offer several advantages in the cryptocurrency industry. Firstly, OTC trades provide a higher level of liquidity compared to traditional exchanges. This is especially important for large trades, as OTC desks have access to a network of liquidity providers who can facilitate the execution of large orders. Additionally, OTC trade agreements offer more flexibility in terms of settlement options. Parties can choose between different settlement methods, such as cash settlement or physical delivery of the underlying asset. This allows for more customized trading strategies and risk management. Another advantage is the ability to trade during off-market hours. OTC desks operate 24/7, allowing traders to execute trades outside of regular exchange hours. This can be particularly useful for global traders who want to take advantage of market opportunities in different time zones. Overall, OTC trade agreements provide enhanced liquidity, flexibility, and accessibility for traders in the cryptocurrency industry.
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