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.
"A fund buys a large BCH position via OTC to avoid slippage on public exchanges."
OTC can reduce price impact but introduces counterparty, settlement, and custody risk. Reputable desks use escrow, KYC/AML, and post-trade reporting.
"An OTC desk escrows seller coins and buyer funds before releasing to both sides upon confirmation."
All terms and definitions may update as the Cryptionary improves.