Forex trading involves risk. Losses can exceed deposits

OTC trading definition

Forex trading involves risk. Losses can exceed deposits

What is OTC trading?

OTC stands for over-the-counter, and refers to a trade that is not made on a formal exchange. Instead, most OTC trades will take place directly between two parties — often two traders, or a retail trader and a provider. Many OTC trades are handled via a dealer network.

When you trade OTC with a trading provider, you'll usually see two prices listed: a single buy price, and a single sell price. This differs from on-exchange trading, where you'll see multiple buy and sell prices from lots of different parties.

What markets can you trade OTC?

OTC trading is a popular feature of forex markets, where currencies are bought and sold via a network of banks, instead of on exchanges. This means that forex trading is decentralised, and can take place 24 hours a day — instead of being limited to an exchange's opening hours.

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