When liquidity is low, big crypto trades can cause big movements in the prices of some coins. This exchange’s new feature is designed to tackle that.
Large crypto orders can be challenging — and it can be difficult to get consistent, favorable prices when the markets are moving quickly.
But now, a crypto exchange has launched a new feature that aims to tackle this head on.
OKX says Block Trading allows institutions and professional crypto traders to buy and sell cryptocurrencies in bulk, all while eliminating the risk of price slippage.
Spot, futures, options and perpetual swap trades are available — as well as multi-leg combination trades off the books.
The trading platform says this approach offers distinctive advantages for users — opening access to competitive pricing, with trades executed in a single click.
A broad array of assets are also supported through Block Trading, and Solana options were recently added to the list.
Other perks for users include an easy-to-use graphical user interface, a REST API for accessing market data, and an intuitive position builder that enables investors to better visualize potential payoffs and risks.
OKX’s financial markets director Lennix Lai explained: “As the crypto market matures and more professional and institutional investors enter it, OKX is introducing Block Trading to ensure these users have the tools they need to invest well. Block Trading on OKX allows investors to not only make large trades at more favorable prices, but to do so without the risk of their trading causing price slippage.”
How it all works
So all of this sounds exciting — but how exactly does it work in practice?
Well, as the name suggests, it involves breaking down large transactions into smaller blocks.
Block Trading is designed to ensure that transactions can take place over the counter rather than in the open market, meaning it’ll never end up hitting the order books.
Institutions and high-net-worth traders can submit a request-for-quote, with negotiations taking place in private. This also gives deep-pocketed investors confidence over how much they’ll end up paying.
One use case for OKX’s offering comes in the form of Darley Technologies, a high-frequency trading firm.
CEO Clément Florentin explained that the exchange has won plaudits for being user-friendly — and the launch of Block Trading presents “additional opportunities for us to quote sophisticated, multi-investment strategies, without the counterparty having to worry about slippage on execution.”
Just the beginning
It’s been a confident debut for Block Trading on OKX — but the exchange says this is just the beginning.
Looking ahead, the exchange plans to offer an anonymous mode for market makers, bespoke strategies, and DeFi option vaults.
The exchange currently offers more than 500 spot pairs, and over 250 linear and inverse perpetuals and futures.
Clients who use Block Trading can also take advantage of 24/7 VIP support, with a devoted account manager and technical support team on hand to answer queries whenever they arise. And given the global nature of the crypto markets, this is especially important.
Delving into the details of this feature, OKX says the “minimum notional size for a block trade is $50,000 or equivalent” — but that being said, there can be exceptions during times of market volatility.
The exchange has also confirmed that anonymous request-for-quote submissions are also supported, which is ideal for those who want to preserve their identities.
OKX says that it now has more than 20 million customers across 180 international markets — and is now branching out into Web3 after five years of operation through a wallet that’s designed to support the next iteration of the internet.
As the bear market continues to bite, Block Trading could prove to be an all-important weapon for institutions and high-net-worth individuals who are looking to stay one step ahead.