What is Over the Counter (OTC)
The Over the Counter (OTC) feature is used to execute larger trades directly with a counterparty without going through the public order books. Traders will be able to access liquidity without affecting the exchange market price.
How to use the Bitfinex OTC desk
1. To use the Bitfinex OTC desk, you will first need to log in to your Bitfinex account.
2. Then, create an OTC nickname so that other traders can find you. To do this, go to Account > Account Info > OTC Nickname.
3. Next, find the OTC option on the top navigation bar or click here.
4. You will see two options for you to use the Bitfinex OTC desk.
— Access instant liquidity through Bitfinex's OTC desk
This will require that you contact Bitfinex's OTC trader Bill Brindise at bill@bitfinex.com and provide the following information:
- What do you expect your average trade size will be?
Important: The minimum OTC user to user trade is 50 USD equivalent while the minimum for liquidity through our OTC desk is 100,000 USD equivalent.
- What do you expect your average weekly OTC trading volume will be?
- What currencies are you interested in trading? Please list in rank order of importance.
- What are your trading hours?
- Is your Bitfinex account verified (Intermediate level or higher)? If yes, do you have an Individual or Corporate account?
- Do you have counterparties for OTC trades, or will you be looking for liquidity through our desk?
- Where do you bank?
- Do you intend to withdraw fiat or cryptocurrencies?
— Trade directly with another Bitfinex user
To trade directly with another Bitfinex user, you need to know their OTC nickname and initiate an OTC trade.
1. To do that, firstly, create an OTC trade and enter the OTC nickname of the counterparty you are initiating a trade with.
2. Then, select the Trading Pair and the details of your trade, such as Amount and Price.
3. Click on Request Trade, and you will be prompted to enter your 2FA.
4. The counterparty will be emailed with your request and will need to accept it to complete the trade. Pending trades will appear on your OTC page under Active OTC orders.
Note: You can also select the TIF Date option below to specify a time limit in which you want the order to stay open for. If the counterparty does not respond within the specified time, the trade will be automatically cancelled and will no longer appear in your Active OTC orders.
For more information on Time in Force (TIF), please read our guide What is a Time in Force (TIF) order option on Bitfinex.
Notes:
- The price spread cannot be above 10.0% of the current market price, or else an error message will appear, and the trade will be cancelled;
- The OTC fee is 0.1% for both the buyer and the seller;
- OTC trades are completed using funds in your exchange wallet;
- Order size must be at least $50 in equivalent. You will be able to see the total USD value in the summary box below.
If you have any inquiries, feel free to contact Bitfinex Support. We are happy to help!
