What is the meaning of OTC in the finance industry and how does it relate to cryptocurrencies?

3 answers

• DencozZDec 12, 2024 · 8 months ago
  OTC stands for Over-the-Counter, which is a method of trading financial instruments directly between two parties, without the involvement of an exchange. In the finance industry, OTC trading is commonly used for stocks, bonds, and derivatives. In the context of cryptocurrencies, OTC refers to the trading of cryptocurrencies outside of traditional exchanges. This type of trading is often used by institutional investors and high-net-worth individuals who want to buy or sell large amounts of cryptocurrencies without affecting the market price. OTC trading offers privacy, flexibility, and the ability to negotiate prices directly with counterparties. However, it is important to note that OTC trading carries higher risks and may not offer the same level of transparency and regulatory oversight as trading on exchanges.
  823

  412
• HoovyManJun 11, 2022 · 3 years ago
  OTC, short for Over-the-Counter, is a term used in the finance industry to describe the trading of financial assets directly between two parties, without the need for a centralized exchange. In the context of cryptocurrencies, OTC trading refers to the buying and selling of cryptocurrencies outside of traditional exchanges. This type of trading is often used by institutional investors and large traders who want to execute large orders without impacting the market. OTC trading allows for greater privacy and flexibility compared to trading on exchanges. However, it is important to note that OTC trading can be riskier and may lack the same level of transparency and regulatory oversight as trading on exchanges.
  716

  239
• Jay SavaniNov 04, 2022 · 3 years ago
  OTC, or Over-the-Counter, is a term commonly used in the finance industry to refer to the trading of financial assets directly between two parties, without the involvement of an exchange. When it comes to cryptocurrencies, OTC trading refers to the buying and selling of cryptocurrencies outside of traditional exchanges. This type of trading is often used by institutional investors and high-net-worth individuals who want to trade large amounts of cryptocurrencies without impacting the market. OTC trading offers advantages such as privacy, flexibility, and the ability to negotiate prices directly with counterparties. However, it is important to be cautious when engaging in OTC trading, as it can be less regulated and carry higher risks compared to trading on exchanges.
  777

  195