Non-Synchronous Trading refers to trading activities that occur outside the immediate, simultaneous interaction of buyers and sellers, often characterizing asynchronous order execution or delayed settlement processes. In crypto, this can manifest in various forms, including over-the-counter (OTC) desks, dark pools, or certain decentralized finance (DeFi) protocols where transactions are not instantly matched on a central order book.
Mechanism
This trading model is characterized by orders being submitted and potentially filled over an extended period rather than instantaneously, or by transactions taking place in a less transparent environment away from the primary exchange’s live order stream. It involves intermediary systems or protocols that queue, aggregate, or facilitate trades with an inherent time lag or without continuous price discovery.
Methodology
This approach is frequently employed by institutional traders aiming to execute large orders with minimal market impact, leveraging liquidity sources that operate independently of immediate, high-frequency market interactions. This strategic choice balances potential price improvement or reduced slippage against the inherent delays or reduced transparency compared to real-time, synchronous exchange trading.
We use cookies to personalize content and marketing, and to analyze our traffic. This helps us maintain the quality of our free resources. manage your preferences below.
Detailed Cookie Preferences
This helps support our free resources through personalized marketing efforts and promotions.
Analytics cookies help us understand how visitors interact with our website, improving user experience and website performance.
Personalization cookies enable us to customize the content and features of our site based on your interactions, offering a more tailored experience.
