Block Trading

Block trading is the execution of a very large order, typically by institutional investors, away from the public order book to avoid causing significant price movement. These trades are often negotiated privately and then reported to the market.

By executing in this manner, the participants avoid the slippage and market impact that would occur if they tried to buy or sell the entire block on a public exchange. Block trading is a vital tool for large players to manage their portfolios without disrupting the market price.

It provides a mechanism for liquidity that is not immediately visible to the public, though it eventually impacts the market once the trade is finalized. This practice is common in both traditional finance and large-scale digital asset markets.