OTC (Over-The-Counter)
Market
Direct trade between counterparties outside of exchanges.
OTC trades happen off exchange, often with a broker or desk. They help move size quietly and allow tailored settlement, but they require trusted counterparties.
Frequently asked questions
Why use OTC?
To trade large sizes with lower market impact and custom settlement terms.What are the risks?
Counterparty default and operational errors. Use reputable desks and clear contracts.How is price set?
By negotiation using reference markets and quotes.