How does OTC trading work? | Bitcointalksearch.org

chillandrew1511

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Quote from: benjiandrews on April 02, 2019, 09:13:10 PM

Can someone explain OTC Bitcoin trading? From what I understand it's a way to trade off the record as to not create major price swings in the market. Is it done entirely in person? If it was done online at all, wouldn't it be traceable???

OTC – “over the counter market”. Suppose you have a fund and are trying to buy 1million usd worth of bitcoin or have an ICO project trying to sell BTC to get 1million usd. If you try to place such a large trading order on the trading floor, this order will cause the whole market to fluctuate and you can make a huge loss. Please visit my post, maybe it will help you.
Link post: https://bitcointalksearch.org/topic/what-is-bitcoin-otc-trading-basic-mistakes-when-trading-bitcoin-otc-5128022.

nc50lc

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Quote from: benjiandrews on April 02, 2019, 09:13:10 PM

Wouldn't it be Traceable?

OTC (Over The Counter) trades are handled by brokers who are mostly from famous Exchanges, and thus everything is traceable including the fiat money used.
What aren't traceable are the Peer-to-Peer trades that didn't took place in any Exchange, example: our Marketplace board (which isn't considered as OTC, there's no "counter").

Quote from: benjiandrews

From what I understand it's a way to trade off the record as to not create major price swings in the market.

Yep, it's meant for really huge volumes (about more or less $200k-$1m+) and the trades were excluded in the exchange's volumes even though OTC trades are often offered by the Exchanges themselves.
It's basically, them Whales trading with each other with the help of the broker(s), their trading volume is isolated from the Exchange's volumes.

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Quote from: benjiandrews on April 02, 2019, 09:13:10 PM

Can someone explain OTC Bitcoin trading? From what I understand it's a way to trade off the record as to not create major price swings in the market.

That's pretty much one of the main reasons why you transact through OTC, if you're willing to buy/sell huge amounts of bitcoin as to not not swing the prices. Basically, you get better prices through OTC because you don't directly affect the liquidity if you use spot exchanges.

Quote from: benjiandrews on April 02, 2019, 09:13:10 PM

Is it done entirely in person?

Not necessarily. It can be done online or in person.

Quote from: benjiandrews on April 02, 2019, 09:13:10 PM

If it was done online at all, wouldn't it be traceable???

If the funds are sent through a typical bitcoin transaction, then yes it's traceable. I don't think privacy is the main goal in the first place though.

benjiandrews

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Can someone explain OTC Bitcoin trading? From what I understand it's a way to trade off the record as to not create major price swings in the market. Is it done entirely in person? If it was done online at all, wouldn't it be traceable???

Topic: How does OTC trading work? (Read 182 times)