The Liquidity Conundrum: Battling Market Impact in Large Crypto Trades
The Liquidity Conundrum: Battling Market Impact in Large Crypto Trades One of the primary reasons for engaging in over the counter (OTC) crypto trading is to circumvent the liquidity limitations of public exchanges. While exchanges boast deep order books for major assets, a multi million dollar buy or sell order can still significantly move the market, leading to substantial slippage and an unfavorable average execution price. OTC desks promise to absorb this market impact, but they too...