# What Is the Difference between a Hit Rate and a Win Rate in RFQ Dealer Evaluation? ▴ Question

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

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![An abstract visual depicts a central intelligent execution hub, symbolizing the core of a Principal's operational framework. Two intersecting planes represent multi-leg spread strategies and cross-asset liquidity pools, enabling private quotation and aggregated inquiry for institutional digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-rfq-protocol-engine-for-institutional-digital-asset-derivatives.jpg)

![Interconnected, sharp-edged geometric prisms on a dark surface reflect complex light. This embodies the intricate market microstructure of institutional digital asset derivatives, illustrating RFQ protocol aggregation for block trade execution, price discovery, and high-fidelity execution within a Principal's operational framework enabling optimal liquidity](https://options.greeks.live/wp-content/uploads/2025/07/precision-geometric-prisms-reflecting-institutional-digital-asset-derivatives-rfq-price-discovery-and-optimized-execution-market-microstructure.jpg)

## Concept

In the architecture of institutional trading, particularly within the bilateral price discovery protocol of a Request for Quote (RFQ) system, the evaluation of dealer performance hinges on a precise, data-driven understanding of engagement and competitiveness. Two fundamental metrics form the bedrock of this analysis ▴ the [hit rate](https://prime.greeks.live/area/hit-rate/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) and the [win rate](https://prime.greeks.live/area/win-rate/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). Their functions are distinct, yet deeply interconnected, offering a multi-dimensional view of a liquidity provider’s behavior.

Misinterpreting their signals or conflating their meanings can lead to suboptimal [liquidity sourcing](https://prime.greeks.live/area/liquidity-sourcing/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), strained dealer relationships, and ultimately, degraded execution quality. The correct application of [these metrics](https://prime.greeks.live/question/what-are-the-core-quantitative-metrics-used-to-measure-execution-quality-under-these-frameworks/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) provides a foundational layer for constructing a robust and responsive liquidity network.

The core distinction lies in what each metric is designed to measure. A dealer’s hit rate quantifies their reliability and willingness to participate. It is a measure of responsiveness. Conversely, a dealer’s win rate quantifies their ability to provide the most competitive price or quote that is ultimately transacted upon.

It is a measure of pricing efficacy. One tells you if a dealer is present and active in the market you are seeking; the other tells you if their presence translates into actionable, market-leading liquidity. A holistic evaluation system requires both to function, as one without the other provides an incomplete and potentially misleading portrait of a dealer’s value to a client’s execution workflow.

![Abstract intersecting geometric forms, deep blue and light beige, represent advanced RFQ protocols for institutional digital asset derivatives. These forms signify multi-leg execution strategies, principal liquidity aggregation, and high-fidelity algorithmic pricing against a textured global market sphere, reflecting robust market microstructure and intelligence layer](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-multi-leg-execution-algorithmic-pricing-global-liquidity-principal-trading-systemic-integration-high-fidelity-execution.jpg)

## The Hit Rate a Measure of System Responsiveness

A dealer’s hit rate, sometimes referred to as a [quote rate](https://prime.greeks.live/area/quote-rate/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) or response rate, is the percentage of RFQs to which a dealer provides a valid quote. It is the primary indicator of a dealer’s engagement with a client’s flow. From a systemic viewpoint, it measures the reliability of a connection to a specific liquidity node. A consistently high hit rate suggests that the dealer is technologically integrated, has sufficient risk capacity for the requested instruments, and values the client relationship enough to dedicate resources to responding.

The calculation is straightforward:

**Hit Rate = (Number of Quotes Received from Dealer / Total Number of RFQs Sent to Dealer) 100%**

A low hit rate can be a critical diagnostic tool. It may indicate several underlying issues ▴ the dealer may not actively make markets in the specific [asset class](https://prime.greeks.live/area/asset-class/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), they may be experiencing internal technical issues, or they may be strategically choosing to ignore certain types of flow due to risk limits or a perceived lack of profitability. For the institutional client, tracking this metric is the first step in ensuring their RFQ panel is populated with active, reliable participants. A dealer that does not quote is a dealer that provides no potential for execution, regardless of how competitive [their pricing](https://prime.greeks.live/question/how-do-market-makers-hedge-their-risk-when-pricing-a-multi-leg-basis-trade-rfq/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) might theoretically be.

![A sleek, dark, angled component, representing an RFQ protocol engine, rests on a beige Prime RFQ base. Flanked by a deep blue sphere representing aggregated liquidity and a light green sphere for multi-dealer platform access, it illustrates high-fidelity execution within digital asset derivatives market microstructure, optimizing price discovery](https://options.greeks.live/wp-content/uploads/2025/07/advanced-rfq-system-for-digital-asset-derivatives-price-discovery.jpg)

## The Win Rate a Measure of Execution Competitiveness

The win rate measures the frequency with which a dealer’s quote is the one selected by the client for execution. After a dealer has responded to an RFQ (a “hit”), the win rate assesses the quality of that response relative to other dealers in the same auction. It is the ultimate measure of a dealer’s pricing competitiveness and their ability to secure the trade.

> A dealer’s win rate is the critical indicator of their pricing efficacy within a competitive RFQ environment.

The calculation for win rate is as follows:

**Win Rate = (Number of Trades Executed with Dealer / Number of Quotes Received from Dealer) 100%**

A high win rate is a clear signal that a dealer is providing aggressive and market-leading pricing. However, the context of the win rate is paramount. As research from BestX highlights, a 30% win rate against a single competitor is a vastly different performance than a 30% win rate against a panel of seven other dealers. Advanced analytics platforms, therefore, often introduce concepts like a “Par-Adjusted Win Ratio” ([PAWR](https://prime.greeks.live/area/pawr/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite)), which normalizes the win rate based on the number of participants in the RFQ.

This provides a more intellectually honest assessment of whether a dealer is outperforming or underperforming the statistical expectation. For a dealer, a low win rate is a direct indication that their pricing models need recalibration or that their risk appetite is misaligned with the client’s flow.

![Teal capsule represents a private quotation for multi-leg spreads within a Prime RFQ, enabling high-fidelity institutional digital asset derivatives execution. Dark spheres symbolize aggregated inquiry from liquidity pools](https://options.greeks.live/wp-content/uploads/2025/07/digital-asset-derivatives-rfq-prime-os-high-fidelity-execution.jpg)

![A central, metallic cross-shaped RFQ protocol engine orchestrates principal liquidity aggregation between two distinct institutional liquidity pools. Its intricate design suggests high-fidelity execution and atomic settlement within digital asset options trading, forming a core Crypto Derivatives OS for algorithmic price discovery](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-architecture-optimizing-liquidity-aggregation-and-high-fidelity-execution.jpg)

## Strategy

Understanding the definitions of hit and [win rates](https://prime.greeks.live/area/win-rates/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) is the prerequisite; leveraging them for strategic advantage is the objective. For both the institutional client (liquidity seeker) and the dealer (liquidity provider), these metrics are central to a continuous feedback loop of performance optimization. They are the core components of any sophisticated dealer scorecarding system, which moves the client-dealer relationship from one based on subjective perception to one grounded in quantitative, objective reality. The strategic application of these metrics allows for the systematic refinement of liquidity sourcing and provision, enhancing capital efficiency and execution quality for all participants.

![Abstract forms depict interconnected institutional liquidity pools and intricate market microstructure. Sharp algorithmic execution paths traverse smooth aggregated inquiry surfaces, symbolizing high-fidelity execution within a Principal's operational framework](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-microstructure-prime-os-1.jpg)

## Client Perspective Optimizing the Liquidity Panel

For an institutional client, the primary strategic goal is to construct and maintain the most effective panel of liquidity providers for their specific needs. This involves a dynamic process of evaluating, adding, and sometimes removing dealers based on their performance. The hit and win rates are the two main levers in this optimization process.

- **Hit Rate Analysis** ▴ A client’s first filter is reliability. A dealer with a chronically low hit rate for a particular asset class is consuming a valuable slot on the RFQ panel. This spot could be allocated to a more responsive dealer. Strategic analysis involves setting a minimum hit rate threshold. Dealers falling below this threshold might be placed on a watchlist, engaged in a dialogue to diagnose the issue, or ultimately removed from the panel for that product. This ensures that every RFQ sent has the highest possible probability of receiving a competitive response. 

- **Win Rate Analysis** ▴ Once reliability is established, the focus shifts to competitiveness. A dealer with a high hit rate but a near-zero win rate is a “courtesy quoter.” They are present but never competitive. While this may seem harmless, it can skew the client’s perception of the market and potentially waste time. The more insightful analysis combines the two metrics. A dealer with a moderate hit rate but a very high win rate is a specialist; they are selective but highly effective when they choose to participate. This is a valuable dealer. A client’s strategy is to find the optimal blend of reliable “all-rounders” and competitive “specialists” for their panel. 

- **Panel Sizing and Tiering** ▴ These metrics directly inform the optimal number of dealers to include in an RFQ. Including too many dealers can dilute the value of the flow for each participant, potentially leading to lower hit rates across the board as dealers feel their chances of winning are diminished. Analyzing the win rates of the top three dealers versus the rest of the panel can reveal if the panel is too large. If the top two dealers consistently account for 90% of the traded volume, the remaining dealers may not be providing significant value. This can lead to a tiered system where primary dealers are queried on most trades, and a secondary panel is included for larger or more complex inquiries. 

![Close-up reveals robust metallic components of an institutional-grade execution management system. Precision-engineered surfaces and central pivot signify high-fidelity execution for digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-grade-digital-asset-derivatives-rfq-execution-precision-optimizing-market-microstructure-for-best-execution-and-prime-os.jpg)

## Dealer Perspective Resource Allocation and Pricing Strategy

For a dealer, hit and win rates are critical inputs for managing their trading desk’s resources and refining their pricing algorithms. These metrics provide a clear view of their performance from the client’s perspective, allowing them to make informed strategic adjustments.

> For a dealer, analyzing hit and win rates is fundamental to optimizing pricing engines and allocating balance sheet effectively.

The following table outlines the strategic considerations for a dealer based on different combinations of hit and win rates:

| Scenario | Indication | Strategic Action |
| --- | --- | --- |
| High Hit Rate / High Win Rate | The dealer is a valued, primary liquidity provider for this client. The pricing is sharp, and the relationship is strong. | Protect this position. Ensure continued high levels of service and potentially explore deeper collaboration with the client. |
| High Hit Rate / Low Win Rate | The dealer is consistently quoting but is not competitive enough on price. This is often termed “being in the stack but never on top.” This consumes quoting capacity with little return. | Review pricing models. The dealer may be applying too wide of a spread for this client’s flow. An adjustment to the pricing algorithm or risk parameters is necessary. |
| Low Hit Rate / High Win Rate | The dealer is highly selective but very effective when quoting. This suggests they are a specialist in a particular niche. | Identify the characteristics of the RFQs being won. The strategy is to expand capacity in this niche and potentially increase the hit rate for this specific, profitable flow. |
| Low Hit Rate / Low Win Rate | The dealer is neither responsive nor competitive. This indicates a fundamental misalignment with the client’s needs or a lack of focus in this market segment. | A strategic decision is required. Either dedicate resources to improve both responsiveness and pricing, or re-allocate those resources to more profitable client relationships. |

![A metallic, circular mechanism, a precision control interface, rests on a dark circuit board. This symbolizes the core intelligence layer of a Prime RFQ, enabling low-latency, high-fidelity execution for institutional digital asset derivatives via optimized RFQ protocols, refining market microstructure](https://options.greeks.live/wp-content/uploads/2025/08/precision-rfq-protocol-engine-for-institutional-digital-asset-derivatives.jpg)

![A sleek, metallic control mechanism with a luminous teal-accented sphere symbolizes high-fidelity execution within institutional digital asset derivatives trading. Its robust design represents Prime RFQ infrastructure enabling RFQ protocols for optimal price discovery, liquidity aggregation, and low-latency connectivity in algorithmic trading environments](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-execution-control-for-optimal-market-microstructure-precision.jpg)

## Execution

The theoretical understanding and strategic importance of hit and win rates are crystallized during execution. This is where data is captured, analytics are performed, and decisions are implemented. For an institutional trading desk, the execution framework involves the systematic collection of RFQ lifecycle data, the construction of quantitative dealer scorecards, and the application of those findings to automate and improve future liquidity sourcing decisions. This operationalizes the strategic goals, transforming abstract metrics into a tangible execution advantage.

![An exposed institutional digital asset derivatives engine reveals its market microstructure. The polished disc represents a liquidity pool for price discovery](https://options.greeks.live/wp-content/uploads/2025/07/high-fidelity-digital-asset-derivatives-rfq-execution-system.jpg)

## Data Architecture for RFQ Evaluation

The foundation of any robust dealer evaluation system is a granular and comprehensive data capture mechanism. The trading system, whether an Order Management System (OMS) or an Execution Management System (EMS), must log every critical event in the RFQ process. The required data points include:

- **RFQ Sent Timestamp** ▴ The precise time an RFQ was sent to a specific dealer. 

- **Dealer ID** ▴ A unique identifier for each liquidity provider on the panel. 

- **Instrument Details** ▴ Full identifiers for the asset being traded (e.g. ISIN for bonds, CUSIP, ticker). 

- **Trade Parameters** ▴ The side (buy/sell), the notional amount, and the RFQ type (e.g. live or indicative). 

- **Quote Received Timestamp** ▴ The time the dealer’s response was received. The latency (Quote Received – RFQ Sent) is another key performance metric. 

- **Quote Details** ▴ The price and, if applicable, the size of the quote. 

- **Trade Executed Flag** ▴ A boolean indicator showing whether the RFQ resulted in a trade. 

- **Winning Dealer ID** ▴ The identifier of the dealer who won the trade. 

This data, aggregated over time, forms the raw material for the calculation of hit rates, win rates, and a host of other analytics, such as response latency and price variance. As research into electronic bond markets shows, modeling the behavior of competitors is crucial for a dealer to manage their hit ratios and estimate the probability of trading at a given price. This underscores the importance of a rich dataset.

![Interlocking transparent and opaque geometric planes on a dark surface. This abstract form visually articulates the intricate Market Microstructure of Institutional Digital Asset Derivatives, embodying High-Fidelity Execution through advanced RFQ protocols](https://options.greeks.live/wp-content/uploads/2025/07/geometric-abstraction-of-institutional-digital-asset-derivatives-market-microstructure-driving-high-fidelity-execution-via-principal-rfq-protocols-and-optimal-liquidity-aggregation.jpg)

## Constructing the Dealer Scorecard

A [dealer scorecard](https://prime.greeks.live/area/dealer-scorecard/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) is the primary tool for visualizing and acting upon performance metrics. It provides a consolidated view of each dealer’s contribution, allowing for at-a-glance comparisons and deeper analysis. A well-structured scorecard moves beyond simple hit and win rates to include context-aware metrics.

> A quantitative dealer scorecard is the operational nexus where performance data is translated into actionable liquidity strategy.

The table below provides a simplified example of a quarterly dealer scorecard for a specific asset class, such as [corporate bonds](https://prime.greeks.live/area/corporate-bonds/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite).

| Dealer | RFQs Sent | Quotes Received | Hit Rate (%) | Trades Won | Win Rate (%) | Avg. Response Time (ms) | Normalized Win Rate (PAWR) |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Dealer A | 1000 | 950 | 95.0% | 285 | 30.0% | 150 | 1.20 |
| Dealer B | 1000 | 980 | 98.0% | 147 | 15.0% | 200 | 0.60 |
| Dealer C | 500 | 150 | 30.0% | 60 | 40.0% | 500 | 1.60 |
| Dealer D | 1000 | 900 | 90.0% | 90 | 10.0% | 180 | 0.40 |
| Dealer E | 250 | 50 | 20.0% | 5 | 10.0% | 1200 | 0.40 |

From this scorecard, a trading desk can draw several execution-level conclusions. Dealer A is a strong primary dealer with excellent reliability and competitive pricing. Dealer B is reliable but consistently uncompetitive.

Dealer C is a highly valuable specialist who should be included in RFQs for instruments within their niche. Dealers D and E are underperforming and may warrant a reduction in the number of RFQs sent to them or a conversation about their service level.

The execution of this strategy can be automated. Modern EMS platforms can use this historical data to power “smart order routers” for RFQs. These systems can automatically select the optimal panel of dealers for a given trade based on historical performance, asset class, trade size, and market conditions, thus operationalizing the entire evaluation framework in real-time.

![A sophisticated apparatus, potentially a price discovery or volatility surface calibration tool. A blue needle with sphere and clamp symbolizes high-fidelity execution pathways and RFQ protocol integration within a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-rfq-protocol-institutional-digital-asset-derivatives-execution.jpg)

## References

- Lambert, Colin. “BestX RFQ Par Introduces a New Way to Look at Hit Ratios.” The Full FX, 10 June 2021.

- Inalytics. “Identifying Manager Skill.” The Hedge Fund Journal, 2009.

- O’Hara, Maureen. Market Microstructure Theory. Blackwell Publishers, 1995.

- Bergault, P. et al. “The behavior of dealers and clients on the European corporate bond market.” arXiv preprint arXiv:1703.07559, 2017.

- Albin, J. M. & Sjö, M. “Bidding models for bond market auctions.” DiVA portal, 2019.

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

- Madhavan, Ananth. “Market microstructure ▴ A survey.” Journal of Financial Markets, vol. 3, no. 3, 2000, pp. 205-258.

- Lehalle, Charles-Albert, and Sophie Laruelle. Market Microstructure in Practice. World Scientific Publishing, 2013.

![A robust, dark metallic platform, indicative of an institutional-grade execution management system. Its precise, machined components suggest high-fidelity execution for digital asset derivatives via RFQ protocols](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-platform-high-fidelity-price-discovery-and-atomic-settlement-infrastructure.jpg)

## Reflection

The distinction between a hit rate and a win rate provides a foundational grammar for evaluating liquidity. This framework, while powerful, is only a single module within a more extensive operational intelligence system. Its true value is realized when integrated with other analytical components ▴ execution cost analysis, information leakage models, and qualitative relationship management. The data offers a precise map of past performance.

The challenge, and the opportunity, lies in using that map to navigate future uncertainty. How does this quantitative framework align with the qualitative aspects of your dealer relationships? Where in your execution workflow can this data be transformed from a retrospective report into a predictive, automated advantage? The answers to these questions define the path from competent execution to market leadership.

![Two sleek, distinct colored planes, teal and blue, intersect. Dark, reflective spheres at their cross-points symbolize critical price discovery nodes](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-multi-leg-execution-liquidity.jpg)

## Glossary

<a href="https://prime.greeks.live/area/hit-rate/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Abstract, layered spheres symbolize complex market microstructure and liquidity pools. A central reflective conduit represents RFQ protocols enabling block trade execution and precise price discovery for multi-leg spread strategies, ensuring high-fidelity execution within institutional trading of digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-engine-for-high-fidelity.jpg)

## Hit Rate

Meaning ▴ Hit Rate quantifies the operational efficiency or success frequency of a system, algorithm, or strategy, defined as the ratio of successful outcomes to the total number of attempts or instances within a specified period. </a><a href="https://prime.greeks.live/area/win-rate/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A precise teal instrument, symbolizing high-fidelity execution and price discovery, intersects angular market microstructure elements. These structured planes represent a Principal's operational framework for digital asset derivatives, resting upon a reflective liquidity pool for aggregated inquiry via RFQ protocols](https://options.greeks.live/wp-content/uploads/2025/07/precision-engineered-institutional-digital-asset-derivatives-trading-platform-underpinning-rfq-protocol-liquidity-aggregation-and-high-fidelity-execution.jpg)

## Win Rate

Meaning ▴ Win Rate, within the domain of institutional digital asset derivatives trading, quantifies the proportion of successful trading operations relative to the total number of operations executed over a defined period. </a><a href="https://prime.greeks.live/area/liquidity-sourcing/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A glossy, segmented sphere with a luminous blue 'X' core represents a Principal's Prime RFQ. It highlights multi-dealer RFQ protocols, high-fidelity execution, and atomic settlement for institutional digital asset derivatives, signifying unified liquidity pools, market microstructure, and capital efficiency](https://options.greeks.live/wp-content/uploads/2025/08/prime-os-core-for-best-rfq-digital-asset-derivatives-institutional-trade-flow.jpg)

## Liquidity Sourcing

Meaning ▴ Liquidity Sourcing refers to the systematic process of identifying, accessing, and aggregating available trading interest across diverse market venues to facilitate optimal execution of financial transactions. </a><a href="https://prime.greeks.live/question/what-are-the-core-quantitative-metrics-used-to-measure-execution-quality-under-these-frameworks/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, pointed object, merging light and dark modular components, embodies advanced market microstructure for digital asset derivatives. Its precise form represents high-fidelity execution, price discovery via RFQ protocols, emphasizing capital efficiency, institutional grade alpha generation](https://options.greeks.live/wp-content/uploads/2025/07/institutional-grade-digital-asset-rfq-execution-system-microstructure.jpg)

## These Metrics

Core execution metrics quantify the friction and information leakage between an investment decision and its final implementation. </a><a href="https://prime.greeks.live/area/quote-rate/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Teal and dark blue intersecting planes depict RFQ protocol pathways for digital asset derivatives. A large white sphere represents a block trade, a smaller dark sphere a hedging component](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-liquidity.jpg)

## Quote Rate

Meaning ▴ Quote Rate quantifies the frequency at which a market participant issues or updates their bid and ask prices within a trading venue, representing a core metric of market-making activity. </a><a href="https://prime.greeks.live/question/how-do-market-makers-hedge-their-risk-when-pricing-a-multi-leg-basis-trade-rfq/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A robust metallic framework supports a teal half-sphere, symbolizing an institutional grade digital asset derivative or block trade processed within a Prime RFQ environment. This abstract view highlights the intricate market microstructure and high-fidelity execution of an RFQ protocol, ensuring capital efficiency and minimizing slippage through precise system interaction](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-digital-asset-derivatives-rfq-protocol-execution-engine.jpg)

## Their Pricing

Mastering multi-leg basis trades requires an integrated system that prices, executes, and hedges interconnected risks as a single operation. </a><a href="https://prime.greeks.live/area/asset-class/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Intersecting angular structures symbolize dynamic market microstructure, multi-leg spread strategies. Translucent spheres represent institutional liquidity blocks, digital asset derivatives, precisely balanced](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-platform-4.jpg)

## Asset Class

Meaning ▴ An asset class represents a distinct grouping of financial instruments sharing similar characteristics, risk-return profiles, and regulatory frameworks. </a><a href="https://prime.greeks.live/area/pawr/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A transparent, multi-faceted component, indicative of an RFQ engine's intricate market microstructure logic, emerges from complex FIX Protocol connectivity. Its sharp edges signify high-fidelity execution and price discovery precision for institutional digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-optimized-for-best-execution.jpg)

## Pawr

Meaning ▴ The Pre-Trade Analytical Workflow Router (PAWR) is a modular component within institutional digital asset derivatives trading architecture. </a><a href="https://prime.greeks.live/area/win-rates/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A precision algorithmic core with layered rings on a reflective surface signifies high-fidelity execution for institutional digital asset derivatives. It optimizes RFQ protocols for price discovery, channeling dark liquidity within a robust Prime RFQ for capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-optimized-for-precision.jpg)

## Win Rates

Meaning ▴ Win Rates represent a core quantitative metric within algorithmic trading and strategy performance evaluation, defined as the proportion of profitable trades relative to the total number of trades executed over a specified period. </a><a href="https://prime.greeks.live/area/dealer-scorecard/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A metallic disc, reminiscent of a sophisticated market interface, features two precise pointers radiating from a glowing central hub. This visualizes RFQ protocols driving price discovery within institutional digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-price-discovery.jpg)

## Dealer Scorecard

Meaning ▴ A Dealer Scorecard is a systematic quantitative framework employed by institutional participants to evaluate the performance and quality of liquidity provision from various market makers or dealers within digital asset derivatives markets. </a><a href="https://prime.greeks.live/area/corporate-bonds/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, institutional-grade system processes a dynamic stream of market microstructure data, projecting a high-fidelity execution pathway for digital asset derivatives. This represents a private quotation RFQ protocol, optimizing price discovery and capital efficiency through an intelligence layer](https://options.greeks.live/wp-content/uploads/2025/07/institutional-rfq-digital-asset-derivatives-execution-microstructure-prime-os.jpg)

## Corporate Bonds

Meaning ▴ Corporate Bonds are fixed-income debt instruments issued by corporations to raise capital, representing a loan made by investors to the issuer. </a>

**Tags:** [Liquidity Sourcing](https://options.greeks.live/area/liquidity-sourcing/), [Hit Rate](https://options.greeks.live/area/hit-rate/), [Win Rates](https://options.greeks.live/area/win-rates/), [PAWR](https://options.greeks.live/area/pawr/), [RFQ Par](https://options.greeks.live/area/rfq-par/), [Win Rate](https://options.greeks.live/area/win-rate/)	

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### [What Are the Differences in Profiling between Voice and Electronic Rfq Systems?](https://options.greeks.live/question/what-are-the-differences-in-profiling-between-voice-and-electronic-rfq-systems/)
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### [What Are the Best Practices for Creating a Data Driven Dealer Scorecard for Rfq Protocols?](https://options.greeks.live/question/what-are-the-best-practices-for-creating-a-data-driven-dealer-scorecard-for-rfq-protocols/)
![A precision engineered system for institutional digital asset derivatives. Intricate components symbolize RFQ protocol execution, enabling high-fidelity price discovery and liquidity aggregation. This advanced market microstructure facilitates multi-leg spread strategies within a robust prime brokerage operational framework.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-precision-4.jpg)

A data-driven dealer scorecard is an objective performance framework that translates execution data into actionable routing intelligence.

- 
### [How Does Algorithmic Trading Impact Relationship Capital in RFQ Protocols?](https://options.greeks.live/question/how-does-algorithmic-trading-impact-relationship-capital-in-rfq-protocols/)
![A precision optical component on an institutional-grade chassis, vital for high-fidelity execution. It supports advanced RFQ protocols, optimizing multi-leg spread trading, rapid price discovery, and mitigating slippage within the Principal's digital asset derivatives.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-optical-component-prime-os.jpg)

Algorithmic trading re-architects RFQ protocols by translating relationship capital into a quantifiable, performance-based asset.

- 
### [What Are the Primary Differences in Analyzing RFQ Data versus Central Limit Order Book Data?](https://options.greeks.live/question/what-are-the-primary-differences-in-analyzing-rfq-data-versus-central-limit-order-book-data/)
![A precision-engineered device with a blue lens. It symbolizes a Prime RFQ module for institutional digital asset derivatives, enabling high-fidelity execution via RFQ protocols. It optimizes price discovery, managing counterparty risk for block trades and latent liquidity.](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-protocol-high-fidelity-engine.jpg)

RFQ vs. CLOB analysis is the study of negotiated counterparty risk versus anonymous, continuous market risk.

- 
### [How Does the Introduction of Electronic Trading Platforms Alter Best Execution Obligations in Corporate Bonds?](https://options.greeks.live/question/how-does-the-introduction-of-electronic-trading-platforms-alter-best-execution-obligations-in-corporate-bonds/)
![A symmetrical, intricate digital asset derivatives execution engine. Its metallic and translucent elements visualize a robust RFQ protocol facilitating multi-leg spread execution. This system optimizes market microstructure and price discovery, ensuring high-fidelity execution and aggregated inquiry for capital efficiency.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-best-execution.jpg)

Electronic trading transforms best execution from a qualitative duty into a quantitative, data-driven discipline of process and proof.

- 
### [What Are the Primary Drivers of Slippage in Electronic RFQ for Illiquid Securities?](https://options.greeks.live/question/what-are-the-primary-drivers-of-slippage-in-electronic-rfq-for-illiquid-securities/)
![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)

Slippage in illiquid RFQs is the execution cost of information leakage and market maker risk aversion.

- 
### [What Is the Role of Information Leakage in Rfq Based Tca?](https://options.greeks.live/question/what-is-the-role-of-information-leakage-in-rfq-based-tca/)
![Translucent, multi-layered forms evoke an institutional RFQ engine, its propeller-like elements symbolizing high-fidelity execution and algorithmic trading. This depicts precise price discovery, deep liquidity pool dynamics, and capital efficiency within a Prime RFQ for digital asset derivatives block trades.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-engine-14.jpg)

Information leakage in RFQ-based TCA is the quantifiable cost of signaling, measured as adverse price impact during execution.

- 
### [How Can Institutions Systematically Improve Their RFQ Hit Rates over Time?](https://options.greeks.live/question/how-can-institutions-systematically-improve-their-rfq-hit-rates-over-time/)
![A dark blue sphere and teal-hued circular elements on a segmented surface, bisected by a diagonal line. This visualizes institutional block trade aggregation, algorithmic price discovery, and high-fidelity execution within a Principal's Prime RFQ, optimizing capital efficiency and mitigating counterparty risk for digital asset derivatives and multi-leg spreads.](https://options.greeks.live/wp-content/uploads/2025/07/market-microstructure-driven-institutional-digital-asset-derivatives-rfq.jpg)

Systematically improving RFQ hit rates requires a data-driven approach to counterparty selection, timing, and execution.

- 
### [How Does Transaction Cost Analysis Quantify the Value of a Dealer Relationship?](https://options.greeks.live/question/how-does-transaction-cost-analysis-quantify-the-value-of-a-dealer-relationship/)
![A sleek device showcases a rotating translucent teal disc, symbolizing dynamic price discovery and volatility surface visualization within an RFQ protocol. Its numerical display suggests a quantitative pricing engine facilitating algorithmic execution for digital asset derivatives, optimizing market microstructure through an intelligence layer.](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-for-digital-asset-rfq-execution-system-with-smart-liquidity-routing.jpg)

Transaction Cost Analysis quantifies a dealer relationship by translating execution data into objective metrics of cost, risk, and liquidity access.

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---

**Original URL:** https://options.greeks.live/question/what-is-the-difference-between-a-hit-rate-and-a-win-rate-in-rfq-dealer-evaluation/
