Crypto OTC trading is a direct transaction arranged with a trading desk, outside a public exchange order book. The client and desk agree the asset, size, price and settlement terms for the proposed trade. OTC stands for over-the-counter.
What does the desk do?
A desk is the point of contact for the transaction. The enquiry begins with what you want to buy or sell, the approximate amount and your timing. The desk confirms whether it can support the request and explains the next steps.
The exact service depends on the provider. Ask whether the desk is trading as your counterparty or arranging execution on your behalf. That distinction affects how the transaction is documented and how the price is determined.
How is OTC different from an exchange?
On an exchange, an order is generally matched according to the venue’s rules. The price and result depend on the order type, available liquidity and market activity. With a desk trade, you discuss the transaction directly and review quoted terms.
A large market order can fill across several price levels. An OTC quote may instead set out a price for a specified amount, valid for a limited time. Check whether the price is indicative or executable and what you must do to accept it.
What belongs in a quote?
Review the transaction as a whole. Ask the desk to confirm:
- The exact asset, trading pair and quantity.
- The quoted price and the total amount payable or receivable.
- Any separate fees and whether costs are included in the quote.
- When the quote expires and what counts as acceptance.
- Funding requirements and settlement deadlines.
- The currency, beneficiary or wallet, and blockchain network.
A quoted rate is less useful if you do not know the costs or settlement conditions attached to it. Keep a written record of the terms you accept.
Does OTC remove market risk?
No. Digital asset prices remain volatile. A quote also does not eliminate counterparty, banking, operational or blockchain risks. Network congestion and a bank’s processing hours can affect when funds arrive.
Do not assume that a conversation locks a price. An enquiry, an indicative rate and an accepted executable quote are different stages.
What should you prepare?
Bring a short brief: the asset, buy or sell direction, approximate size, preferred timing and settlement requirements. If you are acting for a business, identify who is authorised to agree the trade and what records the business needs.
Leave identity documents, bank details and wallet information for the approved onboarding and settlement channels. A first enquiry does not need to contain sensitive documents.
Where does Lumora fit?
Lumora is launching with an OTC desk offering. Start by discussing your proposed trade. Asset and currency availability, minimum sizes, eligibility and settlement arrangements need to be confirmed by the desk.
Further reading
Examples of how established desks describe OTC: Kraken’s OTC overview and Coinbase Prime’s request-for-quote explanation. Their services and terms are their own; they do not describe Lumora’s offering.