Liquidity Aggregation
Liquidity is defined as the ability to execute a trade quickly and at a desirable price.
For such markets as FX or equity – liquidity is not a problem anymore. However, for the newly established cryptocurrency market it still remains a major issue.
Liquidity aggregation provides unique benefits such as:
Having ALL cryptocurrencies available on one platform (No longer a need to open a Bitfinex + Binance + Bittrex account because there are some crypto-assets trading on one of these exchanges but not listed on the other).
Always the best prices for execution – since the aggregator will pick the best asset price from multiple exchanges and execute accordingly.
Combined liquidity offers less slippage, thinner spreads and ability to execute larger trades at once.
Improved latency and reduced execution costs
Quotes from multiple exchanges provide the ability to develop algorithmic trading strategies such as cross-exchange arbitrage, and HFT trading, allowing investors to follow to such algorithmic strategies.
By aggregating liquidity from the leading exchanges GERINO creates a huge opportunity for market making, hedging and offering an aggregated order book from combined quotes of multiple exchanges. There is currently no centralized exchange and cryptocurrency market development is still in its infancy there are huge inefficiencies which provide ample opportunities for arbitrage and HFT. Such liquidity provides great opportunities to establish new products such as Vanilla options or Binary options as well as other derivatives in the future.
Last updated