> For the complete documentation index, see [llms.txt](https://docs.extended.exchange/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.extended.exchange/extended-resources/trading/rfq-execution.md).

# RFQ Execution

In addition to its order book markets, Extended offers **RFQ (Request for Quote) markets** across both crypto and RWAs. On RFQ markets, trades are executed by market makers picking up user orders, rather than through matching in a public order book. The lists of RFQ markets are available on the [Crypto Markets](/extended-resources/trading/crypto-markets.md#rfq-markets) and [RWA Markets](/extended-resources/trading/rwa-markets.md#rfq-markets) pages.

### How Orders Execute on RFQ Markets

* **There is no public order book.** The order book displayed on the trading screen is indicative only and does not represent resting orders from other traders.
* **Market orders** execution starts at the Best Bid / Best Ask of the indicative order book at time of order submission. If not immediately filled, the order re-prices progressively toward the Max Slippage limit set up by user over up to 1.1 seconds. If no market maker fills the order within that window, it's cancelled - market orders never rest. Slippage is bounded by the Max Slippage setting: orders will never fill worse than that limit. The Mark Price acts as a reference guard for the starting point of execution: if the Best Ask is 3% or more above the Mark Price when buying, or the Best Bid is 3% or more below the Mark Price when selling, execution starts from the Mark Price instead. The same applies if no Best Bid / Best Ask is available at that moment. Execution therefore always starts from whichever of the two prices is better for the trader. \
  \
  The execution start price is determined as follows: \
  \
  Buy orders:

  * No Best Ask available → Mark Price
  * (Best Ask / Mark Price − 1) × 100 ≥ 3 → Mark Price
  * (Best Ask / Mark Price − 1) × 100 < 3 → Best Ask

  Sell orders:

  * No Best Bid available → Mark Price
  * (Best Bid / Mark Price − 1) × 100 ≤ −3 → Mark Price
  * (Best Bid / Mark Price − 1) × 100 > −3 → Best Bid<br>

  Take-profit and stop-loss orders follow the same progressive re-pricing logic but starting from Mark price once triggered.
* **Limit orders** are placed as regular limit orders. Market makers see them and pick them up when they see fit. If the limit order crosses the spread of the indicative order book (buy above the Best Ask, sell below the Best Bid), it is executed as a market order: execution starts from the Best Ask / Best Bid and re-prices toward the limit price, which acts as the worst price the order can be filled at. As a result, such an order can be filled better than its limit price. If no indicative Best Ask / Best Bid is available, execution starts from the Mark Price. The standard limit-order price bands of ±15% around the Mark Price apply - see the RFQ sections of the [Crypto](https://app.gitbook.com/o/a12FrrLMs4PoMRyRv074/sites/site_leqsY/s/ThTVaNuyiBCaumOB7kqP/extended-resources/trading/crypto-markets/trading-rules#group-specific-trading-rules-2) and [RWA](https://app.gitbook.com/o/a12FrrLMs4PoMRyRv074/sites/site_leqsY/s/ThTVaNuyiBCaumOB7kqP/extended-resources/trading/rwa-markets/trading-rules#group-specific-trading-rules-1) Trading Rules.
* RFQ markets use the same accounts, collateral, unified margin, and trading fee structure as all other Extended markets.

### Open Interest Caps

Every RFQ market has a cap on its total open interest. Per-group OI Cap values are listed in the RFQ sections of the [Crypto](/extended-resources/trading/crypto-markets/trading-rules.md#group-specific-trading-rules-2) and [RWA](/extended-resources/trading/rwa-markets/trading-rules.md#group-specific-trading-rules-1) Trading Rules.

When a market's open interest reaches its cap, the market enters **reduce-only mode**: orders that would increase open interest are rejected, while orders that reduce existing positions continue to be accepted. The market exits reduce-only mode once open interest falls back below the cap.

Funding rates and price feeds on RFQ markets also differ from order book markets - see [Funding Payments](/extended-resources/trading/funding-payments.md#rfq-markets) and [Oracle Prices](/extended-resources/trading/oracle-prices.md).