Dark Pool Trading vs. OTC: What's the Difference?

[Suba]

Dark trading is a private trading platform conducted in dark pools, such as Kraken Dark Pool, sFOX, Liquidnet, MS Pool, Sigma X, etc. These transactions do not impact the market and are often conducted anonymously by large crypto investors, hedge funds, or other institutions.

OTC (Over-The-Counter) is also a large-scale crypto transaction platform, but it occurs outside of major exchanges. (Similar to P2P crypto trading), trading transactions are conducted directly between buyers and sellers, and there is no order book involved. Some crypto exchanges require OTC traders to register with them, and trading limits vary by exchange, but are generally above $5,000.

 

[gwolf666]

Dark trading is when large investors make private transactions on platforms called dark pools, where transactions are anonymous and don't affect the open market price. On the other hand, the over-the-counter (OTC) market allows buyers and sellers to trade directly, bypassing a public exchange, ideal for large, private transactions like those in cryptocurrencies.