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How does TBA trading differ from traditional trading in the cryptocurrency industry?

Nandito TheedensMay 08, 2022 · 3 years ago1 answers

Can you explain the differences between TBA trading and traditional trading in the cryptocurrency industry in detail?

1 answers

  • May 08, 2022 · 3 years ago
    TBA trading differs from traditional trading in the cryptocurrency industry in several ways. Firstly, TBA trading involves trading mortgage-backed securities, while traditional trading involves buying and selling cryptocurrencies. Secondly, TBA trading is typically done through over-the-counter (OTC) markets, while traditional trading is done on cryptocurrency exchanges. Thirdly, TBA trading is more commonly used by institutional investors to manage their exposure to mortgage-backed securities, while traditional trading is more accessible to individual investors. Lastly, TBA trading requires a deep understanding of the mortgage market and the ability to analyze the risks associated with mortgage-backed securities, while traditional trading in the cryptocurrency industry is more speculative in nature and does not require as much specialized knowledge.