Over-the-counter (OTC)
trading
Trades conducted directly between parties rather than through a public order-book exchange.
Over-the-counter trading involves direct negotiation and settlement between counterparties. It’s common for large trades that would move the market if executed on an exchange.
OTC can reduce price impact but introduces counterparty, settlement, and custody risk. Reputable desks use escrow, KYC/AML, and post-trade reporting.
Related terms
Cryptocurrency Exchange
→A cryptocurrency exchange is a platform for buying, selling, or trading digital assets through crypto or fiat markets.
trading · exchange · platform
Liquidity
→How easily an asset can be bought or sold in size without causing a large price move.
finance · trading
Market maker
→A market maker quotes buy and sell prices to provide liquidity, earning the spread and/or incentives.
markets · trading