Cryptocurrency Q&A
How does OTC trading work?
How does OTC trading work?
DongdaemunTrend
Fri Sep 13 2024
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7 answers
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Could you please explain how OTC trading, or Over-The-Counter trading, functions in the cryptocurrency and finance industry? I'm particularly interested in understanding the process by which buyers and sellers directly negotiate and execute trades without the use of a centralized exchange. Are there any advantages or disadvantages to this method of trading? And how does the process of finding a counterparty and settling the trade differ from traditional exchange-based trading?
7 answers
HanbokGlamourQueenEleganceBloom
Sun Sep 15 2024
The over-the-counter, or OTC, market provides an alternative route for investors to trade securities.
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MysticInfinity
Sun Sep 15 2024
Instead of using a centralized exchange like the New York Stock Exchange, OTC trading takes place through a broker-dealer network.
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WhisperVoyager
Sun Sep 15 2024
This method of trading allows for more flexibility and customization, as transactions can be tailored to the specific needs of both buyers and sellers.
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Stefano
Sat Sep 14 2024
Despite not being a formal exchange, OTC networks still adhere to certain eligibility requirements set by regulatory bodies such as the SEC.
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Riccardo
Sat Sep 14 2024
These requirements ensure that only qualified investors and brokers participate in the OTC market, maintaining a level of integrity and transparency.
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