Question Kraken OTC Pro - how does it work and why use it?

[SoNewToAllShit]

I just logged into Kraken's OTC, which I assume works the same way as all OTC platforms.

I also understand that it's the platform used if you're constantly buying and selling crypto. It might be a few seconds faster than just buying and selling through Kraken's regular system.

What's the difference beyond it possibly being a few seconds faster, and why should I, as a beginner, use their OTC instead of just clicking the BUY/SELL buttons in their regular system?

I'm totally new to this area.

 

[aniglo22]

You shouldn't use it; it's not designed for individual investors.
OTC trading is tailored for institutions that require better liquidity and more efficient settlement processes.
In larger trades, slippage can significantly hurt you .
Also one very important factor is privacy: OTC trades are not displayed on the exchange's order book, so no one can see that you're building a position

 

[SoNewToAllShit]

I plan to trade 100K EUR to see how much I can make of it in 24 hours as a test.

From yesterday to today I made 3000 euro with LTC 😀

 

[aniglo22]

SoNewToAllShit said:
I plan to trade 100K EUR to see how much I can make of it in 24 hours as a test.

From yesterday to today I made 3000 euro with LTC 😀
Click to expand...

How much were the spreads ?

 

[SoNewToAllShit]

I have no clue what does that mean.

I just wrote down what I had in my wallet before going to sleep, and when I woke up, I saw it had grown by 3,000 EUR ”“ so I hit the sell button and cashed in.

Now I have bought the same amount again, just cheaper and waiting for it to go up again 🙂

 

[aniglo22]

SoNewToAllShit said:
I have no clue what does that mean.

I just wrote down what I had in my wallet before going to sleep, and when I woke up, I saw it had grown by 3,000 EUR ”“ so I hit the sell button and cashed in.

Now I have bought the same amount again, just cheaper and waiting for it to go up again 🙂
Click to expand...

Difference between bid and ask price .
Just don't trade too volatile coins as you seem (not in a insulting way ) to lack some knowledge and experience . And please avoid using margin .
And also watchout that you don't trade on days with significant news , as you will encounter slippage.

You can see the spread in your screenshot also :

Last edited: Oct 24, 2024

 

[yomboloz]

Kraken OTC has lower fees if i remember correctly.

 

[void]

SoNewToAllShit said:
I just logged into Kraken's OTC, which I assume works the same way as all OTC platforms.

I also understand that it's the platform used if you're constantly buying and selling crypto. It might be a few seconds faster than just buying and selling through Kraken's regular system.

What's the difference beyond it possibly being a few seconds faster, and why should I, as a beginner, use their OTC instead of just clicking the BUY/SELL buttons in their regular system?

I'm totally new to this area.
Click to expand...

it's no rocket science
the main differences are
* you get the transparent price offer using RQF or when communicating with the dealer with no additional/dynamic fees involved
* you have nonstop support (via signal for instance)
* you can use delayed settlement (i.e. close the deal and deposit fiat in 24 hours)

aniglo22 said:
You shouldn't use it; it's not designed for individual investors.
OTC trading is tailored for institutions that require better liquidity and more efficient settlement processes.
In larger trades, slippage can significantly hurt you .
Also one very important factor is privacy: OTC trades are not displayed on the exchange's order book, so no one can see that you're building a position
Click to expand...

probably none of these is true

 

[JohnnyDoe]

void said:
it's no rocket science
the main differences are
* you get the transparent price offer using RQF or when communicating with the dealer with no additional/dynamic fees involved
* you have nonstop support (via signal for instance)
* you can use delayed settlement (i.e. close the deal and deposit fiat in 24 hours)
Click to expand...

This is exactly how all OTC deals work

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[SoNewToAllShit]

I think I get it now... just traded micro amounts to learn how it works... it's easy after all.

only the graph I don't get much out of, but I think I can learn how to read it.

Why is the SPREAD interesting ?

 

[aniglo22]

SoNewToAllShit said:
I think I get it now... just traded micro amounts to learn how it works... it's easy after all.

only the graph I don't get much out of, but I think I can learn how to read it.

Why is the SPREAD interesting ?
Click to expand...

Because it's essentially the premium/fee you pay to kraken . Because you are not paying fees .

 

[Meta]

Kraken OTC may be a little bit cheaper than the main Kraken interface, a little bit easier to use and they can give you invoices. Also fiat settlement would be not with "Payward LTD", but with "Payward OTC LTD". I'm not sure if that entity holds all the same licenses as the main one.

 

[JohnnyDoe]

when you need custom solutions and flexibility you should deal with dedicated OTC companies, not with desks part of exchanges. I'm having a good time with FRNT recently https://www.offshorecorptalk.com/threads/frnt-otc-exchange.44857/

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