Voice-Based Trading refers to the practice of executing financial transactions through direct communication with a broker or dealer via telephone or other voice channels, rather than through electronic trading platforms. In institutional crypto markets, this method is still used for large, bespoke block trades or complex options strategies where direct negotiation is preferred.
Mechanism
A trader communicates their order details (asset, quantity, price, side) to a human broker at a dealer desk. The broker then sources liquidity, negotiates the terms, and executes the trade on behalf of the client, often via internal systems or direct counterparty connections. This process relies on established relationships and human judgment for pricing and execution, particularly in illiquid or complex crypto derivatives markets.
Methodology
The strategic advantage lies in facilitating large, sensitive trades with minimal market impact and allowing for customized execution. It adheres to principles of relationship-based liquidity provision and bespoke client service. While electronic platforms dominate, voice-based trading retains importance for specific institutional crypto transactions that require discretion, complex structuring, or deep human market expertise to navigate unique market conditions or counterparty preferences.
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