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]

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

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]

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

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 :

 

[yomboloz]

Kraken OTC has lower fees if i remember correctly.

 

[void]

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.

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)

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

probably none of these is true

 

[JohnnyDoe]

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)

This is exactly how all OTC deals work

 

[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]

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 ?

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