How does OTC forex trading differ from traditional forex trading in the cryptocurrency market?

1 answers

• Dec 16, 2021 · 3 years ago
  In the cryptocurrency market, OTC forex trading differs from traditional forex trading in terms of privacy and market impact. OTC trading allows for discreet transactions between parties, as trades are not visible on the public order book. This can be advantageous for traders who wish to keep their trading activities private. Traditional forex trading, on the other hand, is more transparent as trades are visible to the market. This transparency can have an impact on market sentiment and price movements. Additionally, OTC forex trading in the cryptocurrency market can have a larger market impact due to the larger trade sizes involved. This means that OTC trades can potentially move the market more compared to traditional forex trades conducted on exchanges.
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