Over-the-counter trading
Over-the-counter trading
What is Over-the-Counter Trading?
Over-the-counter (OTC) trading refers to the process of trading financial instruments, including cryptocurrencies, directly between two parties without the supervision of an exchange. This type of trading is done through a broker-dealer network rather than a centralized exchange.
How Does OTC Trading Work?
In the OTC market, traders can negotiate prices directly with each other. This is different from trading on a public exchange where prices are set by market supply and demand. OTC markets can offer more privacy and flexibility in trading large quantities of assets, which is especially valued by high-net-worth individuals and institutions.
Benefits of OTC Trading in Crypto
OTC trading in the context of cryptocurrencies provides several benefits. It allows significant transactions to be completed without affecting the market price as much as they would on a standard exchange. Also, OTC markets are often more accessible when trading new or less common cryptocurrencies not listed on major exchanges.
Why is OTC Important in All-in-One Platforms?
All-in-one platforms that integrate OTC trading alongside traditional exchange services provide a seamless experience. These platforms cater to varied trading needs and preferences, offering both the transparency of a public exchange and the discretion of OTC markets. Thus, they appeal to both average traders interested in direct deals and institutional traders looking for bulk transactions without market disruption.
