Block Trades

Block trades are large-scale buy or sell orders that are negotiated and executed outside of the public order book to avoid immediate market impact. These transactions are typically conducted between institutional parties or through specialized desk services.

By keeping these trades off the central limit order book, participants prevent the sudden price swings that such a large volume would otherwise cause. Block trades are a standard practice in traditional finance and are increasingly facilitated by over-the-counter desks in the cryptocurrency sector.

They allow for the transfer of significant assets while maintaining confidentiality. However, the subsequent reporting of these trades can still influence market sentiment once they are made public.