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

avatarCryserDec 25, 2021 · 3 years ago1 answers

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

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

1 answers

  • avatarDec 25, 2021 · 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.