Over-the-Counter (OTC) Definition

Over-the-counter trading refers to transactions conducted directly between two parties rather than through a centralized exchange.

What is Over-the-Counter Trading?

OTC markets are common for products such as forex, certain bonds, and CFDs.

They can offer more flexibility but may involve less transparency and standardization than exchange-traded markets.

Trading a CFD directly through a broker rather than on a regulated exchange is an example of an OTC transaction.

An OCO order links two orders so that when one is executed, the other is automatically cancelled.

Open interest is the total number of outstanding derivative contracts, such as futures or options, that have not been settled or closed.

An open position is a trade that has been entered but not yet closed.