I'm considering engaging in a swap trade, but I'm not sure if it's possible or how to do it. I would like to know if trading swaps is a viable option and what the process entails.
As a result, OTC trades often involve a higher level of complexity and require a greater degree of trust between the parties involved.
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BlockchainBaronessFri Oct 11 2024
Customized contracts, also known as financial instruments, are agreements tailored to the specific needs of private parties. They differ from standardized contracts commonly traded on exchanges.
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GwanghwamunGuardianAngelWingsBlessingFri Oct 11 2024
This trust is essential because, unlike exchanges, the OTC market does not provide intermediaries or centralized clearinghouses to guarantee the performance of the contracts.
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ChiaraFri Oct 11 2024
Consequently, there is always some degree of counterparty risk associated with OTC trades. Counterparty risk refers to the possibility that one party to the contract may fail to fulfill its obligations, leading to financial losses for the other party.
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TommasoFri Oct 11 2024
These contracts are exchanged on the over-the-counter (OTC) market, a decentralized platform where buyers and sellers negotiate directly with each other.