Over-The-Counter (Otc) Markets

Over-The-Counter (OTC) Markets

What Are Over-The-Counter Markets?

Over-The-Counter (OTC) markets refer to decentralized markets where trading is conducted directly between two parties without the involvement of a centralized exchange. In OTC markets, traders negotiate and make transactions directly with each other through a network of dealers or brokers. These markets are also known as off-exchange markets since the transactions are not executed on a formal exchange.