What Is OTC Trading?
What is OTC?
Why is OTC better than exchanges?
How is OTC different from trading at an exchange?
At an exchange, in order to conduct a major transaction one has to carry out a series of minor transactions against the fluctuating price. Liquidity and volatility depend on the number of the required transactions and the spread of prices. Price fluctuations are common to the cryptocurrency market, so they can seriously increase the expenses and inflict losses to the players.
In OTC, customers run just one major transaction, which enhances its efficiency and removes problems mentioned above. The transaction is not recorded in the orderbook and is not available publicly, which boosts up the overall confidentiality.
How the demand for OTC changes over time?
How does regulation impact OTC trading?
How to choose an OTC provider?
OTC companies provide solutions for liquidity, pricing, and data acquisition. This one-price-one-solution approach and individual work with each customer build up a client-focused environment. It allows the companies to expand their services from depositing to issuing loans and syndicating.
The best OTC providers adapt to the developing market conditions, and offer their clients competitive services and liquidity. When comparing providers, pay attention to their ability to transact on rapidly developing markets with high volatility and low liquidity.
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