Navigating the world of large-volume trading requires precision, clarity, and the right tools. A Request for Quote (RFQ) is a fundamental mechanism that allows traders to solicit pricing from multiple market makers before executing a sizable trade. This process ensures competitive pricing, better transparency, and improved execution for block trades. Whether you are trading spot, futures, or options, understanding how to properly structure and submit an RFQ is crucial.
This guide walks you through the entire process—from adding multiple trading legs and selecting counterparties to analyzing risk and interpreting key metrics. We’ve also included a detailed FAQ section to address common questions and clarify important concepts.
How to Add Multiple RFQ Legs
You can build multi-leg strategies easily within the RFQ builder. Click Custom Strategy to begin. A pop-up menu will appear allowing you to choose the direction (buy/sell) and volume for your first leg.
Alternatively, you can select a Preset Strategy from the strategy zone icons. Many of these include single or multi-leg instructions. To add more legs, click Add Trading Instruction or interact with the Product field. You can also choose another preset strategy to append more instructions.
Submitting an RFQ Anonymously
To keep your identity hidden from counterparties, enable the Anonymous switch located below the last instruction you’ve added. While your counterparties won’t see who submitted the RFQ, the platform and its customer support team will retain visibility for compliance and support purposes.
Selecting Your Trading Counterparties
Below the final instruction, click Select Counterparties. A menu will pop up showing all available market makers. Your selection here determines who can see your RFQ and submit quotes. By default, all eligible counterparties are selected. You can manually check or uncheck specific entities based on your preference.
Modifying an Existing RFQ Instruction
There are two primary methods to adjust instructions you’ve already added:
Direct Edit: In the position builder, click on the field you wish to modify within the instruction.
- For specific value fields (e.g., expiration date, strike price), a selection menu will appear.
- For numerical fields (e.g., quantity), a text input box will pop up.
- For binary choice fields (e.g., buy/sell, call/put, USDT/crypto margin), toggle buttons will be presented.
- Product Reselection: Click on the value in the Product column, or select Add Trading Instruction below the strategy to open the product menu. Locate the original instruction within the menu and make your changes there.
Utilizing Risk Analysis Tools
The risk analysis chart on the homepage is a powerful visual aid. It displays the expected profit or loss for one unit of currency risk across a range of potential underlying asset prices.
Simply put, by finding a specific price level on the chart and looking at the corresponding point, you can instantly see if your strategy would be profitable (above the x-axis) or result in a loss (below the x-axis). The chart typically shows two lines: one for profit/loss at expiration and another for a specific date before expiration, which you can adjust using a slider above the chart.
Clicking on the Margin pop-up window reveals detailed margin requirements and key risk indicators (the Greeks) for each underlying currency in your strategy.
Updating the Price Chart
You can refresh the price chart associated with a trading instruction in two ways:
- Click the chart icon located to the right of the trading instruction.
- Use the dropdown menu at the top of the chart itself.
Frequently Asked Questions
Q: Where can I find explanations for the preset strategies?
A: Detailed breakdowns for all preset strategies are available in the platform's beginner academy under the "Trading Strategies" theme. These resources explain the objective and structure of each strategy.
Q: How do I submit an order based on a target dollar value (e.g., $100k worth of BTC) instead of a fixed coin amount?
A: In the product selector within the position builder, click the arrow inside the quantity input box. This allows you to switch to entering a target dollar value. Please note this feature is currently only available for spot trading pairs.
Q: What does "Est. Value" refer to?
A: "Est. Value" is the estimated nominal value of an instruction, calculated based on the current order book data. It is provided for your reference to understand the scale of each leg. The actual nominal value upon execution may differ based on the market maker's final quote.
Q: What is meant by "Combined Price"?
A: The combined price is the sum of the prices for all instructions in your strategy, based on current order book data. This is a reference value designed to help you evaluate and compare quotes from different market makers. For strategies involving multiple currencies, this total is converted into a USD-equivalent value to provide a meaningful universal price, though each leg is settled in its respective base currency.
Q: Why can't I add more than 15 counterparties?
A: The platform sets an upper limit of 15 selected counterparties per RFQ to maintain efficiency and quote quality. If you need to broadcast your request to more entities, you can submit additional RFQs.
Q: What is the minimum trade size?
A: The total nominal value of an RFQ must be at least the equivalent of $1,000 USD. This can be comprised of multiple legs (e.g., one leg buying $800 and another selling $200). The USD amount is calculated using current order book data.
Advanced RFQ Features
Changing Option Type (Call/Put)
To switch an option instruction from call to put or vice versa, simply click the "Call" or "Put" button on that specific instruction.
Altering Futures Margin Type (Cross/USDT)
For futures or perpetual swap instructions, click the "Cross" or "USDT" margin button to change the margin type. This is only possible if the selected contract supports the desired margin type on the platform.
Adding Favorites
- Favorite Pairs: In the product selection menu, click the star icon next to a currency pair to add it to your favorites. Note: For OTC block trading, only entire pairs can be favorited, not individual contracts.
- Favorite Counterparties: In the counterparty selection menu, click the star icon next a market maker's code to add them to your preferred list.
Understanding Preset Strategy Tags
Preset strategies are categorized by tags that indicate their market outlook:
- Bullish: Anticipates the price of the underlying asset will rise.
- Bearish: Anticipates the price of the underlying asset will fall.
- Neutral: Anticipates the price will remain stable.
- Volatility: Anticipates the underlying asset will experience significant price movement.
Maximum Number of Legs
A single RFQ strategy can contain up to 15 individual legs or instructions.
Troubleshooting Counterparty Selection
Market makers on the platform can specify which products and currencies they are willing to provide quotes for. If your RFQ contains an instrument that a selected counterparty does not support, their name will be automatically removed from your list. If you encounter difficulty finding counterparties for a complex multi-leg RFQ, consider splitting your trade into several smaller, simpler requests. For a wider reach, you can explore more strategies on advanced trading platforms.