Block trading is one of the advanced features offered on OKX's Liquid Marketplace, designed for traders looking to execute large cryptocurrency orders without causing significant price slippage. This guide will walk you through the process of setting up and executing block trades on OKX, ensuring you can leverage this powerful tool effectively.
What is Block Trading?
Block trading allows traders to buy or sell large quantities of cryptocurrency without directly impacting the market price. This is particularly useful for:
- Institutional investors
- High-net-worth individuals
- Traders executing complex strategies
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Getting Started with Block Trading on OKX
Prerequisites
Before you can start block trading on OKX's Liquid Marketplace, you need to meet two key requirements:
- KYC Verification: Complete Know Your Customer (KYC) Level 2 verification.
- Minimum Balance: Maintain an account balance equivalent to at least $100,000.
These requirements ensure that the platform remains secure and accessible to serious traders while maintaining lower barriers than traditional institutional platforms.
Accessing the Liquid Marketplace
- Log in to your OKX account.
- Hover over the 'Trade' menu and select 'Liquid Marketplace'.
- Click on 'Start Trading' to enter the block trading interface.
If you haven't completed KYC Level 2 or your balance is insufficient, you'll receive an alert prompting you to fulfill these requirements before proceeding.
Creating a Block Trade Order
Step 1: Build a Custom RFQ
Once inside the Liquid Marketplace, you'll land on the RFQ (Request for Quote) Builder page. Here’s how to create your block trade:
- Click 'Build a new custom RFQ'.
- Select the underlying cryptocurrency you wish to trade from the available list.
- Choose the instrument type (spot, perpetual swaps, futures, or options).
- Specify whether you want to buy (B) or sell (S) the asset.
- Enter the quantity you wish to trade and click 'Done'.
Step 2: Configure Your Trade
Your trade legs will appear in the RFQ Builder section. You can:
- Adjust quantities using the 'Quantity' field.
- Remove legs with the trash can icon.
- Add more legs for multileg strategies using the 'Add/Edit Legs' button.
Step 3: Select Counterparties
Choose up to 15 counterparties to receive your RFQ. You can:
- Select individual counterparties.
- Use 'Select All' to send your RFQ to all available parties.
- Opt for anonymous submission by checking the relevant box.
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Executing Your Block Trade
Receiving Quotes
After sending your RFQ, counterparties will respond with quotes within two minutes. The RFQ Board displays:
- Creation time and expiry countdown.
- Quotes from counterparties (both buy and sell prices).
- Status updates (active, expired, filled).
Accepting a Quote
To execute your trade:
- Click 'Buy' or 'Sell' on your preferred quote.
- Review the order details in the pop-up window.
- Click 'Confirm Execute' to complete the trade.
Post-Trade Actions
Once filled, your trade will appear:
- In the 'History' section of the RFQ Board.
- In trade reports available via email or the reports center.
Advantages of Block Trading on OKX
- Price Stability: Avoid slippage from large orders.
- Confidentiality: Trades execute away from public order books.
- Flexibility: Supports multiple instruments and strategies.
- Accessibility: Lower barriers than traditional institutional platforms.
FAQ Section
What is the minimum balance required for block trading on OKX?
You need at least $100,000 in your account to start block trading.
Can I block trade any cryptocurrency on OKX?
Most cryptocurrencies listed on OKX are available for block trading, including lower market cap assets where slippage is a concern.
How long do RFQs remain active?
RFQs expire after two minutes if no quotes are accepted.
Is anonymous trading possible on OKX's Liquid Marketplace?
Yes, you can choose to submit RFQs anonymously to counterparties.
Where can I view my block trade history?
Completed trades appear in the 'History' section of the RFQ Board and in email trade recaps.
Final Thoughts
OKX's Liquid Marketplace democratizes block trading, making it accessible beyond traditional financial institutions. By following this guide, you can execute large trades efficiently, minimizing market impact and maximizing your trading potential.