OTC, or over-the-counter, refers to the time when assets were traded over the counter at brokerage houses. The process offers less bureaucracy and allows more direct negotiations between buyers and sellers, enabling the investor to find more opportunities when buying currencies.
For large quantity trading, OTC trading mainly provides the following advantages:
Saving Money: One of the most important, in OTC transactions there is an agreement on a price that is beneficial to both parties and that does not need to correspond to the market price. This creates a WIN-WIN scenario for those involved.
Privacy: The market will not see variations, concealing their intentions to enter or exit. Moreover, with a trusted intermediary between the counterparties, they do not need to reveal their identities, being the only one who knows both sides.
Great limits: It is not tied to participation on an exchange under fixed rules. This guarantees traders the ability to trade securities more broadly and without the low limits of traditional platforms.
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