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Academy Beginners Tutorial Article

How to block trade cryptocurrency on OKX

2022.06.30 Rick Delaney

Among the cutting-edge products and services offered on OKX is block trading. Block trading enables users to enter or exit significant cryptocurrency positions without risking price slippage. OKX’s block trading platform lets you trade various instruments supported on the exchange and deploy more advanced multileg trading strategies.

This introduction to block trading on OKX will focus on creating a basic buy or sell order with our block trading feature. Subsequent tutorials will explain using the platform’s multileg and predefined strategies.    

To start block trading on OKX, you must have an account balance equivalent to $200,000 or more. While this obviously excludes some users, the threshold is lower than similar platforms targeting traditional financial institutions. As such, OKX’s block trading is an accessible and user-friendly way to deploy simple or advanced trading strategies with larger amounts.

How to block trade cryptocurrency on OKX

Get started by logging in to your OKX account. From the homepage, hover over “Trade” and click Block trading.

At the block trading homepage, click Request access.

If you have more than $200,000 in your account, you will arrive at the block trading section. If your balance is too low, you will see the screen below. You will need to deposit more crypto or local currency to bring your balance above the threshold to start block trading on OKX.

Select RFQ Builder to create a new custom request for a quote on the following screen. Then, click Build a new custom RFQ.

Next, choose the underlying asset you want to block trade from the list. You can scroll down or search for the relevant cryptocurrency by name or ticker.

You can block trade many of the hundreds of cryptocurrencies available at OKX. Block trading is particularly powerful when trading lower market cap cryptos where price slippage can be a real issue with bulk orders.

Now, choose the instrument you want to trade. OKX’s block trading is super flexible — you can trade spot, perpetual swaps, futures or options with the feature. The instruments available will depend on the underlying cryptocurrency you select. If the instrument is available for the chosen asset, you can block trade it!

Choose whether you want to buy or sell the instrument using the B button to buy and the S button to sell.

Then, enter the amount you want to buy or sell in the field that appears. When you have entered your block trade details, click Done

Your created legs will appear in the “RFQ Builder” section. You can then adjust the amount using the “Amount” field or remove the leg using the trash can button. The “Ind. Notional” field displays the estimated value of the leg in local currency. Clicking the Clear All button will remove all legs, allowing you to build a new RFQ from scratch.

The Add/Edit Legs button lets you add additional legs to your block trade. This allows you to deploy more advanced block trading strategies, giving you absolute control over your trades. We’ll cover these strategies in a dedicated tutorial. For now, we’ll demonstrate a simple BTC sell.

Clicking Add/Edit Legs also lets you edit the details of existing legs. It will open the instrument selection menu again, enabling you to tweak the essential details and really dial in your strategy.

You can select which counterparties to send your RFQ to by clicking the counterparties highlighted below.

Choose your desired counterparties by checking the box next to each. You can also use the “Select All” option highlighted to send your RFQ to all available counterparties — up to a maximum of 15. Click Done when you have chosen your counterparties.

If you want to submit your RFQ anonymously, check the highlighted box. Then, double-check the details entered. When you’re happy with the order parameters, click Send RFQ.

You’ll then see a pop-up confirming that the RFQ was sent. Click View on RFQ Board to check its status and counterparty responses. Alternatively, click Build another RFQ to send another request for a quote.

On the RFQ Board, you’ll see the requests you have already sent. The board displays the creation date, time until expiry and its status. It also shows quotes made by counterparties. RFQs will remain active for 15 minutes before expiry.

Your selected counterparties will respond with quotes for your RFQ. Responses will remain active for two minutes before expiry.

The counterparty doesn’t know which side of the trade you will take. This incentivizes them to provide the best possible price when quoting. They will often provide quotes for both legs. They might also provide only a buy or sell quote.

You’ll see the quoted prices appear on the RFQ Board. To accept one, click either Buy or Sell.

Next, check the order details on the following pop-up. To complete your block trade, click Confirm Buy or Confirm Sell. The trade will execute away from the order books, meaning it won’t impact the price of the asset traded.

Additionally, other traders won’t know about your block trade and, therefore, can’t use knowledge of the trade to inform their own strategy. This ensures a much better execution than if you were to make a large buy or sell via the exchange’s order book.

After making your order, it will appear on the RFQ Board as “Filled.” You can then see the completed trade in the “History” section at the bottom of the RFQ Board, in the reports center or in a trade recap sent via email.

Trade with size with OKX

Making block trades on OKX is easy and accessible. No longer are block trades strictly reserved for well-connected institutions and hedge funds — crypto natives and other relatively high-net-worth individuals can reap the benefits, too.

If you meet the minimum balance threshold, you can easily trade crypto away from the order books and avoid price slippage, which can really put a dent in your potential profits!

Not already an OKX trader? Sign up today to join our cutting-edge crypto ecosystem

Want to trade on the move? Download the OKX app to put our powerful platform right in your pocket

Disclaimer: This material should not be taken as the basis for making investment decisions, nor be construed as a recommendation to engage in investment transactions. Trading digital assets involve significant risk and can result in the loss of your invested capital. You should ensure that you fully understand the risk involved and take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.