Creating and sending RFQs in RFQ Builder
Creating an RFQ
Choosing pre-defined strategies
In the Pre-defined Strategies section, there are various strategies that have already been pre-defined for you to easily create an RFQ. By simply clicking on any one of the icons, the legs required for the RFQ will automatically be added into the position builder at the top.
To further assist you in choosing your strategy, we have a few tabs under Pre-defined Strategies that categorize strategies by their intended objectives, including:
Bullish: Anticipates an increase in the price of the underlying asset.
Bearish: Anticipates a decrease in the price of the underlying asset.
Neutral: Anticipates the price of the underlying asset will remain stable.
Volatile: Anticipates significant fluctuations in the price of the underlying asset.
After choosing your strategy, you can then choose or enter directly on the leg in the position builder for the necessary fields. The following fields are available:
Side: The leg is buying or selling.
Type: The leg’s margin type (USDT-, crypto-, or USDC-margined).
Margin mode: Cross, cash or isolated*.
Position side: --, long, or short** (if sent as blank, the position side will default to open new positions).
Expiry: Expiration date of the leg, if applicable.
Strike: Strike price of the leg, if applicable.
Quantity: The numerical values for the quantity of crypto in a leg.
Options: Put or call (for options only).
*Leg margin settings must be turned on for this to be available.
**Leg margin settings and position mode must be in hedge mode.
You can turn on or off Leg margin settings in the Settings menu.
Creating custom strategies
Alternatively, you can create custom RFQs by clicking on the Build a new custom RFQ button. From there, a menu will open up for you to select the currency pair and instruments. For each leg, you can select B for Buy or S for Sell and enter its quantity. You can add more legs with the Add or edit legs button. You can send up to a maximum number of 20 RFQs.
If you wish to remove a leg after adding it, you can do so by clicking on the trash bin icon on the right side of the leg in the position builder.
Tip: Clicking the star icon next to a currency pair in the menu will instantly add that pair to your favorites. Liquid Marketplace only supports saving currency pairs as favorites, not individual instruments.
Importing current positions as an RFQ
Lastly, you can send an RFQ to close your current positions with the import position feature. On the RFQ Builder page, navigate to the Positions tab at the bottom. From there, you can choose which positions you want to close and the Import button will be available.
Clicking Import position will automatically create an RFQ with legs in the opposite direction of your current positions in the exact same quantity.
Indicative notional of an RFQ
To assist you in understanding each leg in your strategy, the Ind. notional column is provided to display the hypothetical notional value of a leg using the current order book data. The true notional after execution may differ depending on the maker’s quote that you select.
Submitting RFQ in quote currency terms (spot leg only)
After selecting a product and bringing it into the position builder, clicking the arrow in the box where you input the quantity allows you to instead indicate quantity in quote currency terms. This feature is only available for spot pairs.
Combo price of an RFQ
Combo price is the sum of the prices of all legs based on current order book data. We provide an indicative combo mark price of all the legs in your RFQ. This is only intended as a reference to assist you in selecting the best available marker quote. This value will only be shown if all the legs in your RFQ have the same quote currency.
Minimum size of an RFQ
An RFQ must have a total absolute notional value of at least US$10,000 equivalent value for a single leg Spot RFQ and US$50,000 equivalent value for all other types of strategies.
The total notional value is calculated by adding up all the notional value for every leg in the RFQ. For instance, this can take the form of a long one leg of US$20,000 and a short one leg of US$30,000 equivalent value. The US$ amount will be calculated using current order book data.
Risk analysis feature
After creating your RFQ, you can utilize the risk analysis feature located on the RFQ Builder page itself.
The risk analysis shows a chart graphing the expected profit or loss on one currency risk-unit in your strategy on the y-axis against the spectrum of the potential price of the underlying currency of that leg. What this means is that when the price of the underlying currency is at a particular level, you can find where the graphed line is at this x-coordinate to determine if your strategy would be profitable (above the x-axis) or in a loss (below the x-axis).
Two lines will be visible. One represents the profit or loss at the expiry date; the other represents the profit or loss at some date during the life of the contract(s). This date can be changed using the sliding bar above the chart.
Clicking on the Greeks button will open up tables for each of the underlying currencies in your strategy. The tables will show you the required margin for the strategy along with risk metrics referred to as the greeks.
Sending an RFQ
Choosing your counterparties
Under the last leg of your strategy, there is a text that reads Select counterparties. Clicking here opens up the menu with all available counterparties. Who you select here determines which makers are able to see and submit quotes on your RFQ. Clicking the checkbox next to each name will select or unselect a given counterparty.
By default, our Liquidity Providers (LP) are selected. These are a select few market makers that are able to quote at the highest quality.
Tip: Clicking the star icon next to a counterparty ticker in the counterparty selection menu will instantly add that pair to your favorites.
Send RFQs anonymously
Beneath the last leg you’ve added in the position builder, click on the checkbox for Anonymous and your RFQ will be broadcasted as anonymous. This means that your identifier will not be visible to any counterparties at any point during the life of your RFQ and trade. Your information will still be visible to OKX and our support team.
RFQ direction to counterparties
Counterparties receiving the RFQ will not know the direction that you want to execute the RFQ in. Thus, you can safely send the RFQ in the direction you want and the counterparties will have to provide you with a two-way price.
Sending the RFQ to the counterparties
After selecting your counterparties and choosing whether or not to send it anonymously, you can simply hit the Send RFQ button. If there were no errors in your RFQ, then it will be sent through and you will be redirected to the RFQ Board page where you will be able to see your live RFQ.