What Types of Traders Benefit Most from Using a Crypto RFQ System?
Institutional traders, high-net-worth individuals, and professional trading firms benefit most from crypto RFQ systems. These participants often execute large block trades that could significantly impact the market price if placed on a public order book.
RFQs allow them to receive a discreet, competitive price quote without signaling their intentions to the broader market, thus minimizing slippage and ensuring better execution. DeFi protocols executing large swaps or treasury management operations also benefit from the price stability RFQs provide.
Glossar
Large Block Trades
Execution ⎊ Large block trades, within cryptocurrency and derivatives markets, represent the negotiated transfer of substantial positions between institutional participants, often occurring off-exchange to minimize market impact.
Crypto Rfq
Request ⎊ Crypto Request for Quote (RFQ) is a method used by institutional participants to solicit executable prices for large or complex cryptocurrency and derivative trades directly from one or more liquidity providers.
Professional Trading Firms
Entity ⎊ Professional trading firms are specialized financial entities, such as proprietary trading shops and quantitative hedge funds, that engage in high-frequency, algorithmic, and market-making activities across global financial markets, including the crypto derivatives space.