Explainer
What is OTC trading?
OTC trading lets you execute a large crypto trade directly with a dealing desk, instead of pushing it through a public exchange. Here is what that means, and when it is worth it.
BTC / EURIn brief
What is OTC crypto trading?
OTC (over-the-counter) crypto trading is executing a trade directly with a dealing desk, rather than on a public exchange order book. It’s used for large or sensitive trades, where pushing size through an exchange would move the price against you. The desk quotes an indicative amount for the size you want, sources liquidity across venues and settles bilaterally. Pricing is confirmed at execution.
How it works
How an OTC trade works
- 1
Request a price
You tell the desk the pair, direction and size, in chat with the desk or through the Xchange360 platform once onboarded.
- 2
The desk quotes an indicative amount
The desk sources liquidity across venues and quotes an indicative amount for the size you want.
- 3
Confirm the order
You confirm, and the desk works the order off the public book. The amount is confirmed at execution, as the market can move.
- 4
Settle bilaterally
The trade settles directly to your whitelisted wallet or bank account, in crypto or fiat.
Why not just use an exchange?
Work the public book, or hand the whole size to a desk
Your order sits on the public book for everyone to see, and fills in pieces across the levels available.
The desk handles the whole size off the book, sourced across venues, with an indicative price for the full amount.
The Xchange360 OTC desk
Trade size off the order book, on regulated rails
Xchange360 runs a regulated OTC desk: request an indicative price for the whole order in the desk chat or through the platform, the desk sources liquidity across venues, and the trade settles to your whitelisted wallet or bank account. Pricing is confirmed at execution.
See the OTC deskWhen OTC is worth it
Large or block-size orders that would move an exchange price
Trades where you want an indicative price for the full size before you commit
Sensitive trades where discretion matters
Illiquid pairs or corridors a public book prices poorly
FAQ
Common questions
Why not just use an exchange?
A large order on an exchange walks through the order book and signals your intent to the market. An OTC desk handles the size away from the public book, sourcing liquidity across the venues it works with, with discretion and regulated settlement.
Is OTC only for huge trades?
It’s most valuable where size, discretion or handling by a desk matters. For small, routine trades a public exchange is usually fine.
How is the OTC price set?
The desk aggregates live pricing across the venues and liquidity providers it works with, then quotes an indicative amount for your full size. The amount is confirmed at execution, as the market can move.
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