Over the Counter - futures io
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Over the Counter

Over-the-counter (OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" can be used to refer to stocks that trade via a dealer network as opposed to on a centralized exchange. It also refers to debt securities and other financial instruments such as derivatives, which are traded through a dealer network.

Read more: Over-The-Counter (OTC) Definition | Investopedia https://www.investopedia.com/terms/o/otc.asp


Counter party risk needs to be considered when trading OTC instruments ie is the party on the other side good for their obligations - what would happen to your trade/equity if the counter party failed?



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