How is the concept of 'off book' applied in the world of digital currencies?

3 answers

• Dec 16, 2021 · 3 years ago
  Off book trading in the world of digital currencies refers to transactions that occur outside of the traditional order book. This means that these trades are not visible to the public and do not impact the market price. Off book trading is often used by institutional investors and high-frequency traders to execute large orders without causing significant price movements. It allows them to maintain privacy and avoid slippage. However, off book trading can also introduce risks, such as the potential for market manipulation or insider trading. Overall, it is an important concept in the digital currency space that offers advantages and challenges for market participants.
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• Dec 16, 2021 · 3 years ago
  Off book trading is like a secret club for big players in the digital currency world. It's a way for them to make large trades without everyone else knowing about it. This can be useful for institutional investors who want to keep their strategies private or for high-frequency traders who want to avoid impacting the market. However, off book trading can also be risky because it's not regulated like regular trading. There's a potential for abuse and manipulation, so it's important for regulators to keep an eye on it. In the end, off book trading is just another tool in the digital currency toolbox, with its own pros and cons.
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• Dec 16, 2021 · 3 years ago
  Off book trading, also known as dark pool trading, is a common practice in the digital currency industry. It allows large investors to trade significant amounts of cryptocurrencies without affecting the market price. Off book trades are executed privately between parties, away from the public order book. This method provides liquidity and reduces the impact of large trades on the market. However, it also raises concerns about transparency and fairness. Some argue that off book trading can enable market manipulation and insider trading. It's a controversial topic that regulators and market participants continue to debate. At BYDFi, we believe in promoting transparency and fair trading practices, which is why we prioritize on-exchange trading and discourage off book trading.
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