How to block trade work?

Block trading is a financial transaction that takes place through direct contracts between two or more counterparties, eliminating the need for a centralised exchange. These contracts can involve derivatives like futures or options, allowing for more customised and complex trades.

Block trades are often initiated as sell orders, where one party agrees to sell a large quantity of securities to another at an agreed-upon price. However, they can also involve buy orders, where the counterparty agrees to purchase a substantial amount of securities from the initiating party.

The execution of block trades typically requires the involvement of an intermediary, such as a bank or a specialised broker. These intermediaries facilitate the trade by matching buyers and sellers, managing risk, and ensuring the smooth transfer of securities and funds.

These intermediaries are also known as block trading facilities or blockhouses, and they play a crucial role in the execution of large trades that would otherwise be difficult to manage on a standard exchange. They offer anonymity, confidentiality, and flexibility to traders engaging in block trades.

BTCC, a leading cryptocurrency exchange, offers a range of services that cater to traders looking to engage in block trades and other advanced trading strategies. These services include spot trading, where traders can buy and sell cryptocurrencies at current market prices, and futures trading, which allows traders to speculate on the future price of cryptocurrencies.