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The widespread adoption of cryptocurrency has seen demand for digital assets reach unprecedented heights amongst working-class individuals and institutions. Large volume orders of Bitcoin have become more common as the market matures.
The most common way to place a large volume order is through an Over the Counter (OTC) order with a crypto exchange.
Swyftx’s can execute OTC orders over $100,000 for New Zealand users. In this guide we will cover the specifics of OTC orders, why they are important and how to make an OTC order.
Over the Counter orders are a service typically provided to high volume trade institutions. When making an OTC order, an OTC dealer directly assists with the execution of a high-volume trade outside of a public exchange. An OTC order may be actioned for trades over $100,000.
OTC trades take place to mitigate the effects of slippage that can occur due to the price disruption of high-volume trades. Price disruption or ‘slippage’ can occur when making large trades on a centralised exchange and could result in purchasing an asset at an undesirable price.
Slippage happens when the price of an asset changes between the time the order enters the market and the time the order is executed. Slippage often occurs when the market is volatile or when there is insufficient liquidity – for example a large order of 150,000 plus may be in excess of available sellers at desired rate resulting in the trade ‘soaking up’ the sell side liquidity and filling the order at an undesirable price or ‘slippage’
The impact of slippage can vary depending on asset liquidity at time of order and exchange order-book depth.
Making a high-volume trade through an OTC broker ensures that you avoid or minimise unnecessary slippage by tapping deeper liquidity pools and order books off-exchange. OTC dealers can execute large trades strategically, limiting or avoiding entirely the impact of price slippage.
Swyftx’s OTC trading desk assists users in executing large volume trades across a wide variety of digital assets. Depending on the volume of the trade, our OTC dealers may decide to execute the order via our exchange if they believe the price of the asset will not be impacted. However, If the trade is large enough that it will affect the assets price, then OTC orders are an alternative option to mitigate this risk.
Buying large amounts of Bitcoin is a straightforward process and can be handled on the Swyftx platform by one of our OTC dealers.
Head to Swyftx’s NZ crypto OTC page and book a consultation with one of our OTC dealers. From our OTC page, you will be able to select your preferred meeting time and be asked to fill out a short form with your contact details and some personal information.
Speak with someone from our OTC team to discuss your investment preferences. Our team provides end-to-end support to all our OTC clients, including ongoing support after the order has been executed.
Once you we have established your investment preferences, we will be able to execute your order, whether that be on the Swyftx exchange or as an OTC order.
At Swyftx, offer OTC orders for all our most popular cryptocurrencies. These include Bitcoin, Ethereum, Cardano, Dogecoin, Solana, XRP and more.
Of course! Swyftx is dedicated to providing all users with the highest level of customer support. No matter what level of investing experience or amount you are wanting to trade, every customer is important to us. If you are looking to gain insight into crypto and investment strategies, Swyftx Learn is the perfect place to start. You can buy bitcoin in Australia and 300+ other digital currencies on the Swyftx trading platform.
OTC orders mitigate the effects of slippage, caused by market volatility and low liquidity. Swyftx’s OTC dealers are well-versed in the market and can assist with you with making large volume trades. If you are looking to make a high-volume trade, we highly recommend speaking with our incredible high value accounts team.