🤔 [Analysis] How does crypto OTC actually work? - Connor Dempsey

Financial markets come in two varieties: centralized exchanges, third-party organized exchanges like the Nasdaq or NYSE, and over the counter (OTC) desks. OTC desk trades are trades between two parties, the desk and the buyer. Desks are purchasers of assets who can fill large orders without price slippage. Every year, OTC desks run some $600 trillion worth of trade volume. There are two types of OTC desks, principal and agency. The former fills specific orders based on contracted price quotes while the latter fills price-set orders based on funds sitting with the desk. Billions of dollars of crypto OTC trade volume occurs every year, remarkable for such a new market.