Over-the-Counter (OTC) Trading
Content
Definition
Over-the-Counter (OTC) Trading is trading that occurs directly between parties without the use of a formal exchange.
Usage and Context
Frequently asked questions
- What is OTC over the counter trading? OTC trading is the process of buying and selling financial instruments directly between two parties, without the supervision of an exchange.
- What is the difference between the over-the-counter OTC market and the exchanges? The OTC market involves direct trades between parties without a centralized exchange, while exchanges are formal, regulated marketplaces where securities are bought and sold.
- What is the OTC trade process? The OTC trade process involves negotiating terms directly between buyer and seller, often facilitated by brokers or dealers, and completing the transaction without an exchange.
Benefits
OTC trading offers flexibility, the potential for better pricing, and access to a broader range of financial instruments not always available on formal exchanges.
Conclusion
Over-the-Counter (OTC) Trading involves direct transactions between parties without a formal exchange, providing flexibility and access to a wider range of financial instruments.
