Skip to content

OTC Desk

An OTC desk fills large crypto orders privately instead of on the order book. Why block trades avoid slippage and what counterparty risk they add.

An over-the-counter desk arranges large crypto trades privately between two parties instead of routing them through a public order book. A buyer states the size, the desk quotes a single all-in price, and settlement happens bilaterally, so the trade never consumes visible liquidity and does not print on the exchange tape until much later, if at all. The appeal is that a block order large enough to walk through several levels of a thin book would move the price against the buyer before it filled. In exchange for that, the client accepts counterparty and settlement risk with the desk, which is why reputable desks run know-your-customer checks and often settle through an escrow or custodian.

Related terms

More in Trading & Markets

Memo / Destination Tag · Mempool · Network Selection · OCO Order · Open Interest · Order Book · P2P Trading · Perpetual Futures · Portfolio Margin · Post-Only Order · Realized Capitalization · Reduce-Only Order