Post-RFQ Impact refers to the subsequent effects and observable changes that occur in a market or system after a Request for Quote (RFQ) process has been completed and a trade executed.
Mechanism
This impact manifests as shifts in market liquidity, changes in asset price dynamics, alterations in order book depth, or adjustments in counterparty risk exposure. The execution of a large institutional RFQ trade can consume available liquidity, influence short-term price movements, and signal market sentiment to other participants.
Methodology
Analyzing post-RFQ impact is critical for refining execution strategies and optimizing future institutional options trading. The methodology involves quantifying slippage, assessing market microstructure changes, and evaluating the overall efficiency and cost of execution, enabling sophisticated traders to minimize market disruption and enhance trading profitability in crypto and traditional asset classes.
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