# What Are the Key Differences in Winner's Curse between an RFQ for a Cash Product and an Options Spread? ▴ Question

**Published:** 2025-08-06
**Categories:** Question

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![Smooth, glossy, multi-colored discs stack irregularly, topped by a dome. This embodies institutional digital asset derivatives market microstructure, with RFQ protocols facilitating aggregated inquiry for multi-leg spread execution](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-engine-for-prime-os-best-execution.jpg)

![A multi-layered device with translucent aqua dome and blue ring, on black. This represents an Institutional-Grade Prime RFQ Intelligence Layer for Digital Asset Derivatives](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-protocol-intelligence-layer.jpg)

## Concept

The analysis of winner’s curse within a [Request for Quote](https://prime.greeks.live/area/request-for-quote/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) (RFQ) protocol reveals a fundamental divergence when applied to a cash product versus a multi-leg options spread. The distinction originates not from the auction mechanism itself, but from the dimensionality of the [information asymmetry](https://prime.greeks.live/area/information-asymmetry/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) inherent to each instrument. A cash product RFQ, for a block of stock or a basket of bonds, operates on a primarily two-dimensional risk plane of price and quantity. The core uncertainty revolves around a single, albeit unknown, future clearing price.

An [options spread](https://prime.greeks.live/area/options-spread/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), conversely, introduces a multi-dimensional risk surface where the dealer’s quote is a function of several correlated, yet distinct, parameters. This includes the price of the underlying, the volatility surface across different strikes and tenors, interest rates, and dividend streams. The winner’s curse, therefore, transforms from a singular affliction of over-optimism on price to a complex syndrome of mispriced, correlated risks.

In a [cash product](https://prime.greeks.live/area/cash-product/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) RFQ, a market maker’s primary defense against [adverse selection](https://prime.greeks.live/area/adverse-selection/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) is their real-time understanding of order flow and short-term price direction. Winning a quote request from a client with superior information on a pending market-moving event is the classic setup for the curse. The market maker who wins the bid by paying the highest price (or selling at the lowest) is the one most optimistic about their ability to offload the position profitably, and thus most likely to be wrong when new information becomes public. The informational disadvantage is linear and directly tied to the future price of the single asset.

> The winner’s curse in an options spread RFQ is a function of parameter uncertainty, extending far beyond the simple price risk of a cash product.

An options spread RFQ presents a more intricate challenge. Consider a simple vertical spread. The quoting dealer is pricing two distinct instruments simultaneously. A complex spread, such as a calendarized butterfly, involves four or more instruments with different expiration dates and strike prices.

The dealer who wins this RFQ is the one with the most aggressive composite quote. This aggressiveness might stem from a divergent view on the direction of the underlying asset, a sharper skew on their volatility surface, or a different assumption about interest rate paths. The winner’s curse manifests when the winner’s model is the most erroneously optimistic across this matrix of variables. They may have won because their volatility model was too low, their skew assumption too flat, or their correlation forecast between the legs was inaccurate, leading to a position that is systematically mispriced against the realized market conditions.

![A sophisticated, symmetrical apparatus depicts an institutional-grade RFQ protocol hub for digital asset derivatives, where radiating panels symbolize liquidity aggregation across diverse market makers. Central beams illustrate real-time price discovery and high-fidelity execution of complex multi-leg spreads, ensuring atomic settlement within a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/institutional-grade-rfq-protocol-facilitating-atomic-settlement-and-high-fidelity-execution-of-multi-leg-spreads.jpg)

![A sleek, black and beige institutional-grade device, featuring a prominent optical lens for real-time market microstructure analysis and an open modular port. This RFQ protocol engine facilitates high-fidelity execution of multi-leg spreads, optimizing price discovery for digital asset derivatives and accessing latent liquidity](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-execution-engine-for-high-fidelity-price-discovery-and-latent-liquidity-aggregation-across-multi-leg-spreads.jpg)

## Strategy

Strategic frameworks for mitigating the winner’s curse in RFQ systems must be tailored to the specific structure of the product being traded. For cash products, the strategies are centered on managing information leakage and optimizing dealer selection based on execution quality metrics. For options spreads, the strategic imperative shifts to managing [model risk](https://prime.greeks.live/area/model-risk/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) and understanding the second-order sensitivities, or “Greeks,” of the entire spread structure.

![A precise, multi-faceted geometric structure represents institutional digital asset derivatives RFQ protocols. Its sharp angles denote high-fidelity execution and price discovery for multi-leg spread strategies, symbolizing capital efficiency and atomic settlement within a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/digital-asset-derivatives-rfq-execution-microstructure-framework.jpg)

## Controlling Information Footprint in Cash Products

When an institution initiates an RFQ for a large block of a single stock, the primary strategic goal is to solicit competitive quotes without revealing the full extent of the trading intention to the broader market. A leak of this information can move the market price unfavorably before the trade is even executed, amplifying the potential for the winner’s curse as all dealers adjust their quotes in anticipation. Effective strategies involve a disciplined, systematic approach to interacting with liquidity providers.

- **Tiered Dealer Lists** ▴ Institutions can develop tiered lists of market makers based on historical performance. Tier 1 dealers might receive the first look at sensitive orders due to their demonstrated ability to price large sizes with minimal market impact.

- **Staggered Quoting** ▴ Instead of querying all dealers simultaneously, a buy-side trader might query a small, trusted subset first. This allows for initial [price discovery](https://prime.greeks.live/area/price-discovery/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) without creating a widespread market signal that could trigger adverse price movements.

- **[Algorithmic RFQ](https://prime.greeks.live/area/algorithmic-rfq/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) Management** ▴ Sophisticated execution management systems (EMS) can automate the process, using algorithms to decide which dealers to query, in what sequence, and for what size, based on real-time market conditions and historical dealer performance data.

![Luminous, multi-bladed central mechanism with concentric rings. This depicts RFQ orchestration for institutional digital asset derivatives, enabling high-fidelity execution and optimized price discovery](https://options.greeks.live/wp-content/uploads/2025/07/optimized-digital-asset-derivatives-rfq-protocol-execution-engine.jpg)

## How Does Model Risk Define Options Spread Strategy?

For an options spread, the strategic focus expands from information control to model validation and parameter sensitivity analysis. The dealer providing the quote is running a complex pricing model, and the institution requesting the quote must have a sophisticated understanding of its own valuation to avoid being systematically picked off by a dealer with a superior model or by winning a quote from a dealer with a flawed one. The latter scenario is a unique form of winner’s curse where the “win” is an entry into a position that no other informed dealer was willing to price as attractively because they correctly identified a flaw in the valuation.

> A robust strategy for options spread RFQs involves deconstructing the spread into its component risks and evaluating quotes on more than just the net price.

A primary strategy is the decomposition of the spread’s risk. Before sending the RFQ, the institution should analyze the spread’s aggregate sensitivities. What is the net delta, gamma, vega, and theta of the position? Understanding these aggregate Greeks allows the trader to assess which market variable poses the greatest risk.

A dealer’s quote can then be evaluated not just on its net price, but on the implied parameters it suggests. If a quote seems too good to be true, it may imply a volatility assumption that is far from the consensus, representing a significant risk.

The following table compares the strategic focus for mitigating winner’s curse in the two RFQ types:

| Strategic Dimension | Cash Product RFQ | Options Spread RFQ |
| --- | --- | --- |
| Primary Risk Focus | Adverse Selection (Information Leakage) | Model Risk & Parameter Uncertainty |
| Key Strategic Action | Controlling Information Footprint | Deconstructing & Analyzing Greeks |
| Dealer Vetting Criteria | Low Market Impact, Historical Fill Quality | Model Sophistication, Implied Volatility Accuracy |
| Benchmark for “Good Price” | VWAP, Arrival Price | Internal Model Valuation, Component Leg Pricing |

![A central engineered mechanism, resembling a Prime RFQ hub, anchors four precision arms. This symbolizes multi-leg spread execution and liquidity pool aggregation for RFQ protocols, enabling high-fidelity execution](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-framework-enabling-multi-leg-spread-strategies-for-optimized-liquidity.jpg)

![Sharp, intersecting metallic silver, teal, blue, and beige planes converge, illustrating complex liquidity pools and order book dynamics in institutional trading. This form embodies high-fidelity execution and atomic settlement for digital asset derivatives via RFQ protocols, optimized by a Principal's operational framework](https://options.greeks.live/wp-content/uploads/2025/07/institutional-grade-digital-asset-derivatives-market-microstructure-high-fidelity-execution-across-multi-leg-spread-rfq-protocol-orchestration-within-principals-operational-framework.jpg)

## Execution

The execution protocols for RFQs in cash products and options spreads are architecturally distinct. This distinction is mandated by the data structure of the instruments themselves. The operational workflow, from constructing the RFQ message to post-trade risk management, reflects the jump in complexity from a single-variable problem to a multi-variable system.

![A crystalline geometric structure, symbolizing precise price discovery and high-fidelity execution, rests upon an intricate market microstructure framework. This visual metaphor illustrates the Prime RFQ facilitating institutional digital asset derivatives trading, including Bitcoin options and Ethereum futures, through RFQ protocols for block trades with minimal slippage](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-high-fidelity-execution.jpg)

## Architecting the Request for Quote

The technical implementation of the RFQ message itself highlights the core difference. A cash product RFQ is a simple, flat data structure. An options spread RFQ is a multi-legged, nested structure that requires a more complex messaging format, often managed through specialized APIs or FIX protocol extensions.

Consider the data required for each type of request:

- **Cash Product RFQ** ▴ 

<li>**Instrument Identifier** ▴ e.g. ISIN or CUSIP

- **Side** ▴ Buy or Sell

- **Quantity** ▴ Number of shares/bonds

- **Settlement Terms** ▴ e.g. T+1, T+2

</li>
- **Options Spread RFQ** ▴ 

<li>**Spread Type** ▴ e.g. Vertical, Straddle, Butterfly

- **Underlying Identifier** ▴ e.g. Ticker

- **Leg 1 Details** ▴ 

<li>**Instrument Type** ▴ Call/Put

- **Expiry Date** ▴ YYYY-MM-DD

- **Strike Price** ▴ e.g. 100.00

- **Ratio** ▴ e.g. +1 (Buy 1)

</li>
- **Leg 2 Details** ▴ 

<li>**Instrument Type** ▴ Call/Put

- **Expiry Date** ▴ YYYY-MM-DD

- **Strike Price** ▴ e.g. 110.00

- **Ratio** ▴ e.g. -1 (Sell 1)

</li>
- **(Additional Legs as needed)**

- **Net Price Requirement** ▴ Debit or Credit

</li>

This structural difference necessitates that the trading systems (OMS/EMS) on both the buy-side and sell-side are built to handle multi-leg instruments as a single, atomic package. The system must be able to parse, price, and route these complex structures without breaking them into individual legs, which would destroy the intended risk profile of the spread.

![Sleek, futuristic metallic components showcase a dark, reflective dome encircled by a textured ring, representing a Volatility Surface for Digital Asset Derivatives. This Prime RFQ architecture enables High-Fidelity Execution and Private Quotation via RFQ Protocols for Block Trade liquidity](https://options.greeks.live/wp-content/uploads/2025/07/advanced-institutional-digital-asset-derivatives-platform-architecture-for-high-fidelity-rfq-protocol-execution-and-price-discovery.jpg)

## Quantitative Analysis at the Point of Execution

At the moment a dealer responds to an RFQ, the institutional trader must perform a rapid, data-rich analysis to avoid the winner’s curse. For a cash product, this is primarily a price comparison against a benchmark like arrival price. For an options spread, it is a multi-factor model validation. The trader is not just accepting a price; they are implicitly accepting the dealer’s entire set of pricing assumptions.

> Executing an options spread RFQ is an exercise in rapid, multi-parameter model validation under competitive pressure.

The table below illustrates a hypothetical analysis of a dealer’s quote for a “Long 1×2 Call Spread,” where the trader is buying one call at a lower strike and selling two calls at a higher strike. This is a high-risk strategy where the trader profits from a moderate rise in the underlying but faces unlimited losses if the price rises dramatically. A dealer’s aggressive quote might mask significant risk.

| Parameter | Leg 1 ▴ Buy 1 ABC 100C | Leg 2 ▴ Sell 2 ABC 110C | Net Spread Position | Dealer Quote Implication |
| --- | --- | --- | --- | --- |
| Implied Volatility | 30.5% | 28.0% | Steep Skew | Dealer may be pricing in a lower probability of a large upward move. |
| Delta | +0.55 | -0.70 ( -0.35 x 2 ) | -0.15 | The position is net short delta; it profits from a small drop in price. |
| Gamma | +0.04 | -0.06 ( -0.03 x 2 ) | -0.02 | The position has negative gamma; it will lose money at an accelerating rate if the underlying moves sharply in either direction. |
| Vega | +0.20 | -0.30 ( -0.15 x 2 ) | -0.10 | The position is short vega; it profits from a decrease in implied volatility. |

In this scenario, a winning quote might be attractive on a net premium basis. However, the execution analysis reveals a position with negative gamma and negative vega. The “curse” for the winner would manifest if the underlying asset becomes more volatile or experiences a large price rally.

The trader who “won” the quote did so because they accepted a risk profile that other market participants were unwilling to take on those specific terms. A sound execution system must make these Greek sensitivities instantly visible to the trader at the point of decision, transforming the RFQ from a simple price auction into a sophisticated risk transfer negotiation.

![A sophisticated digital asset derivatives RFQ engine's core components are depicted, showcasing precise market microstructure for optimal price discovery. Its central hub facilitates algorithmic trading, ensuring high-fidelity execution across multi-leg spreads](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-optimizing-multi-leg-spreads-for-optimal-capital-efficiency.jpg)

## References

- Capen, E. C. Clapp, R. V. & Campbell, W. M. (1971). Competitive Bidding in High-Risk Situations. Journal of Petroleum Technology, 23(6), 641-653.

- Thaler, R. H. (1988). Anomalies ▴ The Winner’s Curse. Journal of Economic Perspectives, 2(1), 191-202.

- Harris, L. (2003). Trading and Exchanges ▴ Market Microstructure for Practitioners. Oxford University Press.

- Hull, J. C. (2018). Options, Futures, and Other Derivatives. Pearson.

- Pinter, G. Wang, C. & Zou, J. (2022). Information Chasing versus Adverse Selection. Working Paper, The Wharton School, University of Pennsylvania.

- Bessembinder, H. & Venkataraman, K. (2010). Does the stock market completely discount the future? The information content of dealer quotes. Journal of Financial Economics, 98(2), 249-265.

![A precisely engineered system features layered grey and beige plates, representing distinct liquidity pools or market segments, connected by a central dark blue RFQ protocol hub. Transparent teal bars, symbolizing multi-leg options spreads or algorithmic trading pathways, intersect through this core, facilitating price discovery and high-fidelity execution of digital asset derivatives via an institutional-grade Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-engine-facilitating-high-fidelity-multi-leg-options-spread-execution-best-price-discovery-and-latent-liquidity-access-for-prime-brokerage.jpg)

## Reflection

The examination of the winner’s curse across these two product types moves the conversation from a general market phenomenon to a specific diagnostic of an institution’s operational architecture. The structural integrity of a trading system is revealed by how it handles the flow of information and the analysis of complex data under pressure. A system that treats an options spread RFQ with the same analytical framework as a cash RFQ is brittle, exposing the institution to risks that are hidden within the parameters of the trade.

Ultimately, the objective is to construct an execution framework where every quote request is an act of precise, data-driven risk transfer. This requires an operating system for trading that can deconstruct complex instruments into their fundamental risk components and present that analysis to the human decision-maker at the critical moment. The question for any institution is whether their current infrastructure provides this level of analytical clarity, transforming the RFQ from a potential curse into a strategic capability.

![Smooth, reflective, layered abstract shapes on dark background represent institutional digital asset derivatives market microstructure. This depicts RFQ protocols, facilitating liquidity aggregation, high-fidelity execution for multi-leg spreads, price discovery, and Principal's operational framework efficiency](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-protocol-multi-leg-spreads.jpg)

## Glossary

<a href="https://prime.greeks.live/area/information-asymmetry/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A dark, precision-engineered module with raised circular elements integrates with a smooth beige housing. It signifies high-fidelity execution for institutional RFQ protocols, ensuring robust price discovery and capital efficiency in digital asset derivatives market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-rfq-system-core-high-speed-price-discovery-module.jpg)

## Information Asymmetry

Meaning ▴ Information Asymmetry refers to a condition in a transaction or market where one party possesses superior or exclusive data relevant to the asset, counterparty, or market state compared to others. </a><a href="https://prime.greeks.live/area/request-for-quote/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Central mechanical hub with concentric rings and gear teeth, extending into multi-colored radial arms. This symbolizes an institutional-grade Prime RFQ driving RFQ protocol price discovery for digital asset derivatives, ensuring high-fidelity execution across liquidity pools within market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/precision-institutional-digital-asset-derivatives-rfq-protocol.jpg)

## Request for Quote

Meaning ▴ A Request for Quote, or RFQ, constitutes a formal communication initiated by a potential buyer or seller to solicit price quotations for a specified financial instrument or block of instruments from one or more liquidity providers. </a><a href="https://prime.greeks.live/area/options-spread/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Overlapping dark surfaces represent interconnected RFQ protocols and institutional liquidity pools. A central intelligence layer enables high-fidelity execution and precise price discovery](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-multi-leg-spread-high-fidelity-execution-market-microstructure-prime-os-system.jpg)

## Options Spread

Meaning ▴ An Options Spread defines a composite derivatives position constructed by simultaneously buying and selling multiple options contracts on the same underlying asset, typically with varying strike prices, expiration dates, or both. </a><a href="https://prime.greeks.live/area/adverse-selection/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Abstract dark reflective planes and white structural forms are illuminated by glowing blue conduits and circular elements. This visualizes an institutional digital asset derivatives RFQ protocol, enabling atomic settlement, optimal price discovery, and capital efficiency via advanced market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-optimized-for-high-fidelity-execution-1.jpg)

## Adverse Selection

Meaning ▴ Adverse selection describes a market condition characterized by information asymmetry, where one participant possesses superior or private knowledge compared to others, leading to transactional outcomes that disproportionately favor the informed party. </a><a href="https://prime.greeks.live/area/cash-product/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A precision-engineered, multi-layered system visually representing institutional digital asset derivatives trading. Its interlocking components symbolize robust market microstructure, RFQ protocol integration, and high-fidelity execution](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-high-fidelity-execution-4.jpg)

## Cash Product

Meaning ▴ The Cash Product, within the domain of institutional digital asset derivatives, precisely denotes the underlying spot digital asset itself, such as Bitcoin or Ether, as opposed to any derivative instrument whose value is derived from it. </a><a href="https://prime.greeks.live/area/model-risk/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A central hub with four radiating arms embodies an RFQ protocol for high-fidelity execution of multi-leg spread strategies. A teal sphere signifies deep liquidity for underlying assets](https://options.greeks.live/wp-content/uploads/2025/07/digital-asset-derivatives-rfq-engine-for-optimal-multi-leg-spreads.jpg)

## Model Risk

Meaning ▴ Model Risk refers to the potential for financial loss, incorrect valuations, or suboptimal business decisions arising from the use of quantitative models. </a><a href="https://prime.greeks.live/area/price-discovery/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Angular, transparent forms in teal, clear, and beige dynamically intersect, embodying a multi-leg spread within an RFQ protocol. This depicts aggregated inquiry for institutional liquidity, enabling precise price discovery and atomic settlement of digital asset derivatives, optimizing market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/multi-leg-digital-asset-derivatives-rfq-protocol-aggregation-dynamics.jpg)

## Price Discovery

Meaning ▴ Price discovery is the continuous, dynamic process by which the market determines the fair value of an asset through the collective interaction of supply and demand. </a><a href="https://prime.greeks.live/area/algorithmic-rfq/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Sleek, dark grey mechanism, pivoted centrally, embodies an RFQ protocol engine for institutional digital asset derivatives. Diagonally intersecting planes of dark, beige, teal symbolize diverse liquidity pools and complex market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-engine-powering-high-fidelity-execution-for-multi-leg-spreads-portfolio-margin-and-atomic-settlement-via-prime-os-for-block-trades.jpg)

## Algorithmic Rfq

Meaning ▴ An Algorithmic Request for Quote (RFQ) denotes a systematic process where a trading system automatically solicits price quotes from multiple liquidity providers for a specified financial instrument and quantity. </a>

**Tags:** [Algorithmic RFQ](https://options.greeks.live/area/algorithmic-rfq/), [Winner's Curse](https://options.greeks.live/area/winners-curse/), [Options Greeks](https://options.greeks.live/area/options-greeks/), [Price Discovery](https://options.greeks.live/area/price-discovery/), [Execution Management System](https://options.greeks.live/area/execution-management-system/), [Multi-Leg Execution](https://options.greeks.live/area/multi-leg-execution/)	

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### [What Are the Key Differences between a Standard RFQ and an Axe-Based RFQ Protocol?](https://options.greeks.live/question/what-are-the-key-differences-between-a-standard-rfq-and-an-axe-based-rfq-protocol/)
![A teal-colored digital asset derivative contract unit, representing an atomic trade, rests precisely on a textured, angled institutional trading platform. This suggests high-fidelity execution and optimized market microstructure for private quotation block trades within a secure Prime RFQ environment, minimizing slippage.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-engine-optimization.jpg)

An axe-based RFQ inverts the standard protocol by responding to dealer interest, minimizing information leakage for block trades.

- 
### [What Are the Primary Risks a Bank Dealer Faces When Quoting in an Anonymous RFQ Pool?](https://options.greeks.live/question/what-are-the-primary-risks-a-bank-dealer-faces-when-quoting-in-an-anonymous-rfq-pool/)
![A transparent glass bar, representing high-fidelity execution and precise RFQ protocols, extends over a white sphere symbolizing a deep liquidity pool for institutional digital asset derivatives. A small glass bead signifies atomic settlement within the granular market microstructure, supported by robust Prime RFQ infrastructure ensuring optimal price discovery and minimal slippage.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-grade-digital-asset-derivatives-rfq-execution-prime-os-intelligence-layer-facilitating-optimal-price-discovery-and-best-execution.jpg)

A bank dealer's primary risk in anonymous RFQs is pricing information asymmetry without knowing the counterparty's intent.

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---

**Original URL:** https://options.greeks.live/question/what-are-the-key-differences-in-winners-curse-between-an-rfq-for-a-cash-product-and-an-options-spread/
