GEMINI Rolling Out Ether and BitCoin Block Trading
The cryptocurrency exchange Gemini is rolling out block trading for bitcoin and ether. The roll out should be hitting later this week.
The new rollout will allow customers to make high volume trades and they will not appear in the exchange’s order book. Nobody will see them until they are filled which can give some people huge advantages.
The minimum is 10 bitcoins or 100 ether for the block trade feature. So if you are a smaller margin trader this feature will not be applicable to you.
Gemini says they did this because they want this as a way to create “an additional mechanism to source liquidity when trading in greater size.”
Block trading is great for larger traders such as those who run hedge funds and buy large quantities. Why? Because there will not be immediate effects on the price once these orders come thru. Currently, these hedge fund guys place smaller more frequent orders to minimize the impact on the market or place orders outside of exchanges.
Those who place the orders specify if the trade is a buy or sell order, how many they want and the price they are willing to pay. Once this is placed typically this can be seen by everyone.
Gemini stated “In accordance with our commitment to an equitable, transparent, and rules-based marketplace, block orders will be electronically broadcast to participating market makers simultaneously, ensuring best execution and price discovery for those participating in the program.”
Cameron and Tyler Winklevoss founded Gemini. If you remember them, they were in the big debacle with Marc Zuckerberg back when Facebook was first started. They also stated they may be adding more coins in the near future to their platform.
Bottom line is if you buy big amounts of crypto this is a definite benefit you should check out.