The Gemini exchange is permanently evolving and adding fresh features. Considering that this podium is mainly aimed at institutional investors, it is only corriente that it adds features and devices which benefit those users. Te particular, the introduction of block trading is pretty intriguing.
Explaining the Concept of Block Trading
Cryptocurrency users who have paid close attention to how exchanges operate may be aware that not all trades occur on the main order book. Ter fact, wij have seen several companies embrace the concept of dark pools, which permit for very large trades to take place off the order book. This is usually done to prevent market makers and takers from influencing prices too much.
It now seems Gemini is attempting to implement something similar, albeit they are calling it something entirely different. More specifically, their block trading feature permits users to buy or sell a specific quantity of a particular cryptocurrency. Users also need to inject a ondergrens required pack quantity and a price limit. With this information, it becomes possible to trade vast quantities of cryptocurrency without disrupting the coetáneo order book.
Ter terms of liquidity, this will introduce a lotsbestemming of interesting switches on the Gemini exchange. Finding fresh sources of liquidity has always bot a positive development ter the world of cryptocurrency. Despite the popularity of Gemini, even that trading toneelpodium can have days on which liquidity is very difficult to come by. With this fresh block trading option, users should have an lighter time conducting large trades regardless of order book availability.
This fresh feature is scheduled to go live today. It will be quiebro interesting to see how that plays out, spil it remains unclear how much rente there will be ter it. It is also worth noting that market makers will not receive information pertaining to price thresholds, which should make this a bit more private compared to traditional order book trading.
To keep the translucent nature of Gemini intact, the company will broadcast the block orders to participating market makers at the same time. This should make it a lotsbestemming lighter for big traders to see their orders packed, albeit it will still depend on how many people check out this feature ter the future. Having more ways to trade cryptocurrency is never a bad thing by any means.
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For the time being, it will be interesting to see if other exchanges determine to take a similar course of activity ter the near future. It would be good to see more platforms suggest high-liquidity trading beyond the regular order book, spil it would help reduce overall speculation and manipulation. Generating rente te features such spil block trading will not be effortless, tho’.