How Does the Lack of a Central Order Book Affect Price Discovery in OTC Crypto Trading? ▴ Learn

How Does the Lack of a Central Order Book Affect Price Discovery in OTC Crypto Trading?

The lack of a central, transparent order book means price discovery is decentralized and less visible. OTC desks rely on proprietary pricing models, market feeds, and relationships with liquidity providers to determine a fair price.

While this can offer better execution for large trades, it also makes it harder for the investor to verify that they received the best possible price compared to a public exchange's transparent pricing.

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