Cryptocurrency Q&A
What is it called when you block trade?
What is it called when you block trade?
Claudio
Mon Oct 07 2024
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7 answers
1200
Excuse me, could you please clarify for me what is the term used when referring to a trade that is blocked or not allowed to proceed? I'm particularly interested in understanding the jargon used in the world of cryptocurrency and finance, and how it applies to such scenarios. Is there a specific name for this type of trade that has been halted or restricted? I'm eager to learn more about the intricacies of this field.
7 answers
BitcoinBaron
Wed Oct 09 2024
Recognizing the needs of their institutional clients, major broker-dealers offer specialized services known as "block trading" or "upstairs trading desks." These services cater to the unique requirements of large investors, who seek to execute substantial trades without significantly impacting market prices.
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GeishaMelody
Wed Oct 09 2024
The term "upstairs trading desks" alludes to the dedicated teams or platforms within broker-dealer firms that are responsible for handling block trades. These desks operate separately from the regular trading floors, ensuring a more tailored and discreet approach.
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Martino
Wed Oct 09 2024
By offering block trading services, broker-dealers provide their clients with access to a more liquid and efficient market for large transactions. The private nature of these trades allows for better price negotiation and execution, reducing the risk of market disruption or information leakage.
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NebulaChaser
Wed Oct 09 2024
Block trades represent a unique facet of financial transactions, involving large-scale exchanges of securities that bypass the conventional open market framework. These transactions are characterized by their private negotiation and execution, offering a degree of confidentiality and flexibility to participants.
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Raffaele
Wed Oct 09 2024
Broker-dealers, being intermediaries in the financial markets, play a pivotal role in facilitating block trades. They possess the expertise and infrastructure to manage such high-volume transactions efficiently.
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