8 Nov, 23

Frictionless OTC Trading with Zerocap

otc trading with zerocap banner
Edward Goldman

Analyst

Over-the-counter (OTC) trading serves as a compelling alternative to trading via centralised exchanges, offering investors a range of distinct advantages. This article delves into the realm of OTC trading, exploring its pivotal role in the digital asset landscape with a specific focus on Zerocap’s OTC services, and the wealth of benefits it bestows.

Understanding OTC Trading

OTC trading, typically reserved for larger transactions, involves conducting trades outside centralised exchanges and beyond traditional market hours. These transactions occur directly between two or more parties, either through voice or electronic communication mediums. OTC trading offers investors discretion and access to liquidity beyond the regular market order books, making it an attractive option for serious investors.

Advantages of OTC Trading at Zerocap

Enhanced Liquidity

One of the main differentiators of OTC trading is its ability to address the issue of limited liquidity on centralised and decentralised crypto exchanges. Regular cryptocurrency exchanges have limited access to liquidity, which can be a hindrance for those looking to make large block trades. This is where OTC trading comes into play, empowering Zerocap clients with access to off-market liquidity, through a vast network of liquidity providers and partners. The best part is, clients can do this all through their dedicated, and insured Zerocap trading portal environment. Zerocap’s OTC offering excels through competitive pricing, and its T+0 global settlement capabilities across a wide range of assets and FX pairs, making it an excellent choice for time-sensitive investors.

Increased Capital Efficiency

Savvy investors tend to operate across multiple exchanges, introducing another challenge: Capital Efficiency. Zerocap mitigates the need to juggle significant collateral across many exchanges, through its “all in one” portal solution. Zerocap marries convenience with capital efficiency, through its segregated on-chain wallet offering – all digital assets are held in individual client wallets, easily accessible for trading and transfers 24/7.

Reduced Market Risk

OTC trading minimises transactional risk against slippage and market impact, providing a safer means of executing larger trades. This is in stark contrast to traditional exchanges, where market impact can result in unfavourable trade execution. OTC trading provides price certainty with minimal transaction risk.

Increased Anonymity

OTC trading offers a level of anonymity unavailable in centralised and decentralised venues. Trading with anonymity reduces the risk of targeted hacking and front-running. Large orders sitting on exchange order books can be targeted by trading bots and malicious actors, where OTC trades maintain anonymity, safeguarding client interests.

Global White Glove Access

Zerocap’s experienced trading desk, allows clients to trade 24/7, ensuring no market movements are missed. Zerocap’s White glove service takes this a step further, offering T+0 settlements on a range of crypto and FX pairs, providing a faster and more efficient way to conduct cross-border trades.

Looking forward

As the market capitalisation of digital assets continues to expand, OTC trading will continue to build its relevance, playing a pivotal role in the way traders access market liquidity.

About Zerocap

Zerocap provides digital asset liquidity and digital asset custodial services to forward-thinking investors and institutions globally. For frictionless access to digital assets with industry-leading security, contact our team at [email protected] or visit our website www.zerocap.com

FAQs

  1. What is OTC trading and how does it differ from traditional exchange trading?
    • OTC trading involves direct transactions between parties for large trades, offering benefits like discretion, access to liquidity beyond market order books, and trading outside traditional market hours, unlike traditional exchange trading which is more public and time-bound.
  2. How does Zerocap provide enhanced liquidity through its OTC trading services?
    • Zerocap connects clients with a vast network of liquidity providers and partners, offering off-market liquidity through a dedicated and insured trading portal, which is particularly beneficial for large block trades.
  3. What are the capital efficiency benefits of using Zerocap’s OTC services?
    • Zerocap’s “all in one” portal solution allows investors to manage their collateral efficiently across multiple exchanges, with segregated on-chain wallets for each client, facilitating easy access for trading and transfers.
  4. How does OTC trading with Zerocap reduce market risk?
    • Zerocap’s OTC trading minimizes the risk of slippage and market impact, offering price certainty and safer execution for larger trades compared to the potential volatility of traditional exchanges.
  5. In what way does Zerocap ensure anonymity in OTC trading?
    • Zerocap’s OTC trading maintains client anonymity, reducing the risk of targeted hacking and front-running, which can be a concern with large orders on traditional exchange order books.
DISCLAIMER

This material is issued by Zerocap Pty Ltd (Zerocap), a Corporate Authorised Representative (CAR: 001289130) of AFSL 340799. Material covering regulated financial products is issued to you on the basis that you qualify as a “Wholesale Investor” for the purposes of Sections 761GA and 708(10) of the Corporations Act 2001 (Cth) (Sophisticated/Wholesale Client). This material is intended solely for the information of the particular person to whom it was provided by Zerocap and should not be relied upon by any other person. The information contained in this material is general in nature and does not constitute advice, take into account the financial objectives or situation of an investor; nor a recommendation to deal. Any recipients of this material acknowledge and agree that they must conduct and have conducted their own due diligence investigation and have not relied upon any representations of Zerocap, its officers, employees, representatives or associates. Zerocap has not independently verified the information contained in this material. Zerocap assumes no responsibility for updating any information, views or opinions contained in this material or for correcting any error or omission which may become apparent after the material has been issued. Zerocap does not give any warranty as to the accuracy, reliability or completeness of advice or information which is contained in this material. Except insofar as liability under any statute cannot be excluded, Zerocap and its officers, employees, representatives or associates do not accept any liability (whether arising in contract, in tort or negligence or otherwise) for any error or omission in this material or for any resulting loss or damage (whether direct, indirect, consequential or otherwise) suffered by the recipient of this material or any other person. This is a private communication and was not intended for public circulation or publication or for the use of any third party. This material must not be distributed or released in the United States. It may only be provided to persons who are outside the United States and are not acting for the account or benefit of, “US Persons” in connection with transactions that would be “offshore transactions” (as such terms are defined in Regulation S under the U.S. Securities Act of 1933, as amended (the “Securities Act”)). This material does not, and is not intended to, constitute an offer or invitation in the United States, or in any other place or jurisdiction in which, or to any person to whom, it would not be lawful to make such an offer or invitation. If you are not the intended recipient of this material, please notify Zerocap immediately and destroy all copies of this material, whether held in electronic or printed form or otherwise.
 Disclosure of Interest: Zerocap, its officers, employees, representatives and associates within the meaning of Chapter 7 of the Corporations Act may receive commissions and management fees from transactions involving securities referred to in this material (which its representatives may directly share) and may from time to time hold interests in the assets referred to in this material.  Investors should consider this material as only a single factor in making their investment decision.

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