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Why Do Large Institutions Prefer OTC Markets for Executing Massive Cryptocurrency Block Trades?

OTC allows large crypto block trades to be executed privately, avoiding market impact and slippage on public exchange order books.
Greeks.Live22.11.25

Why Do Large Institutions Prefer OTC Markets for Executing Massive Cryptocurrency Block Trades?

Institutions use OTC markets to execute large trades without causing significant price movements, a phenomenon known as 'slippage' or 'market impact.' Since OTC trades are negotiated privately, the transaction volume is not immediately visible on public exchange order books. This allows for discreet, efficient execution at an agreed-upon price, preserving the integrity of their trading strategy.

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