How do block trades work?

Since block trades are negotiated outside the public auction process, they offer greater flexibility and confidentiality to the participating parties. This allows for more complex and tailored transactions that may not be feasible or desirable in a public setting.

The execution of block trades is often facilitated by specialized institutions or platforms, such as over-the-counter (OTC) desks or electronic trading systems. These intermediaries help match buyers and sellers, negotiate terms, and ensure that the trades are executed smoothly and efficiently.

One notable platform that caters to the needs of block trade participants is BTCC, a top cryptocurrency exchange. BTCC offers a range of services, including spot trading, futures trading, and cryptocurrency wallets, that cater to both retail and institutional investors.

Block trades represent a specific type of financial transaction that involves futures, options, or a combination of both. These deals are negotiated privately between parties, setting them apart from transactions conducted in the public auction market.

The distinguishing feature of block trades lies in the quantity thresholds they must meet. These thresholds vary depending on the market and the underlying asset being traded, but they are typically large enough to have a significant impact on the market's liquidity and pricing.