Definition ∞ A request for quote (RFQ) in digital asset trading is a process where a buyer or seller solicits price quotes from multiple market makers or liquidity providers for a specific trade. This method is often used for large-volume transactions to secure better pricing and reduce market impact. Its function is to obtain competitive pricing for bespoke or significant orders. RFQs facilitate over-the-counter dealings, offering discretion and tailored execution.
Context ∞ The current state of Request for Quote mechanisms in crypto is particularly relevant for institutional participants and high-net-worth individuals seeking efficient execution for substantial trades. Discussions often center on improving price discovery and liquidity aggregation across various venues. A critical future development involves the integration of more automated and transparent RFQ systems, which could enhance market efficiency and fairness for large-scale digital asset transactions.
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