- Summary:
- OKX exchange has launched its Block Trading product targeting high net worth individuals and institutions. How different is it?
OKX exchange has released its Block Trading product to the general public. The product enables the execution of large trades with little price slippage and little effect on the market, making it appealing to institutional and high-net-worth clients. This allows traders to make the most of their cash while using the smallest possible margins. Since its soft release in June, it has undergone numerous iterations and improvements before the final release.
How OKX’s block trading product works
A block transaction is an over-the-counter (OTC) purchase or sale of a large block of assets that has been privately negotiated. When buying or selling a large number of shares, futures, bonds, or cryptocurrency, block trades are advantageous because they prevent price slippage. The block trade product means that OKX has added a new liquidity pool for qualified crypto traders and institutions to use, separate from the order book. Because of this, they are able to trade with only a minor impact on the market and without experiencing any price slippage.
OKX Block Trading is unique since it uses an OTC market concept with many market makers. This indicates that the one with the lowest price wins. It also uses multi-leg strategies and RFQ automation to lower execution risk and improve pricing. The previous minimum investment into Block Trading has dropped to $100,000 from $200,000.
OKX released a beta version of Block Trading in June 2022 and has been continuously improving it in response to customer feedback ever since. When compared to rival products, OKX’s platform stands out because it is highly customizable. Also, in the face of the growing problem of liquidity shortage in the market, the product emphasizes risk management and capital efficiency. OKX is rewarding its most valuable customers with taker fee reimbursements of up to 50% to mark the public debut of Block Trading.