Minimum Acceptable Quantity (MAQ) refers to the smallest trade size or volume that a liquidity provider is willing to quote or execute for a particular asset or derivative. In institutional crypto trading, MAQ is a critical parameter within Request for Quote (RFQ) systems.
Mechanism
Its operational function within an RFQ system architecture dictates that when an institutional party issues an RFQ for a large crypto position, liquidity providers respond with quotes specifying both price and their MAQ. The trading system then aggregates these responses, enabling the initiator to select the best price for their required quantity or to fragment their order across multiple providers if necessary.
Methodology
Strategically, understanding and configuring MAQ limits allows market makers to manage inventory risk and capital allocation efficiently, particularly for less liquid crypto assets or options. For institutional traders, MAQ directly influences execution strategy, determining whether a large block order can be filled by a single counterparty or requires sophisticated smart order routing across multiple RFQ participants for optimal execution.
Anonymous venues transform counterparty selection from a relationship-based decision to a probabilistic analysis of a venue's participant microstructure.
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