Gemini to Allow Block Trading
A major issue when trading cryptocurrencies (as well as futures and securities) is when a large buy or sell order is filled on that market. A large-scale transaction, which may exceed the liquidity of the exchange, can result in a disproportionate effect on the prices of the cryptocurrency or security in said market. A way to quell this issue is to offer the option for block trading. Block trading allows for large transactions to take place outside of the market, in what is commonly referred as the "Over the Counter" (OTC) market. Block trading has been an individual used by companies in Hong Kong and Australia, in more traditional financial applications.
The Gemini exchange, famously operated by the Winklevoss twins, plans to offer their investors the opportunity to participate in block trading. Gemini believes that adding this option will move them up the ranks to compete with their larger competitors, namely, Coinbase/GDAX, and the Goldman Sachs-backed Circle Trade. Gemini plans to offer this new option to all of its customers on April 12. Customers wishing to use block trading must be transacting a minimum of 10 Bitcoin, or 100 Ether; they may then set the minimum quantity allowed to fill the order (whether buying or selling), and set a limit price. As noted by coinjournal.net, allowing all customer the opportunity to make a block trade is essentially giving the individual trader access to methods that have been previously only available to institutional investors.
Cameron Winklevoss made this announcement yestersay, from a blog post regarding Gemini's new trade option: