How does RFQ work in the context of cryptocurrency trading?

3 answers

• Steve BrueckAug 24, 2024 · a year ago
  RFQ, or Request for Quote, is a method used in cryptocurrency trading to request a price quote for a specific trade. Traders can send an RFQ to liquidity providers or market makers, who then respond with a quote for the requested trade. This allows traders to compare prices and liquidity before executing the trade. RFQ is particularly useful for large trades or illiquid markets, as it helps ensure competitive pricing and sufficient liquidity for the trade.
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• hershjoshiSep 03, 2021 · 4 years ago
  In the context of cryptocurrency trading, RFQ works by allowing traders to request a quote for a specific trade from liquidity providers. Traders can specify the quantity and price they are looking for, and liquidity providers respond with a quote that includes the price and the amount of cryptocurrency they are willing to provide. This allows traders to negotiate and compare quotes before deciding to execute the trade. RFQ is commonly used in over-the-counter (OTC) markets and can be beneficial for traders who require personalized quotes and liquidity for their trades.
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• RaziyehNabaviJan 21, 2022 · 4 years ago
  RFQ is an important feature in cryptocurrency trading as it allows traders to request and compare price quotes from liquidity providers. This helps traders ensure they are getting the best possible price for their trades and allows them to access liquidity in illiquid markets. RFQ also provides traders with the opportunity to negotiate and customize their trades, which can be particularly beneficial for institutional traders or those looking to execute large trades. Overall, RFQ enhances transparency and efficiency in cryptocurrency trading and benefits both traders and liquidity providers.
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