Discrete Trading refers to the execution of individual, separate cryptocurrency trades that are distinct in time and scope, rather than being part of a continuous, high-frequency strategy. Its purpose is typically to achieve specific investment objectives or to execute transactions that do not require continuous market interaction.
Mechanism
This trading approach involves manual or automated placement of single orders, which are then processed by market mechanisms like order books or Request for Quote (RFQ) systems. Each trade is considered an independent event, with its own decision parameters and execution confirmation. The flow of information is transactional, focusing on the specific order and its fill status without immediate algorithmic adjustments.
Methodology
The methodology often centers on value investing principles, fundamental analysis, or event-driven strategies, where trade decisions are made based on specific market signals or research, rather than continuous algorithmic responses. A core principle is patience and a focus on long-term or medium-term price targets, accepting potentially higher execution costs for individual trades in exchange for strategic alignment.
RFQ systems enhance crypto options price discovery by aggregating liquidity from multiple dealers, fostering competition, and enabling discrete, high-fidelity execution.
RFQ protocol designs critically shape information leakage in crypto options, dictating execution quality and capital efficiency through architectural choices.
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