Answer Posted / chutke amresh
Over-the-counter (OTC) trading is to trade financial
instruments such as stocks, bonds, or derivatives directly
between two parties. It is the opposite of exchange trading
which occurs on futures exchanges or stock exchanges.
An over-the-counter (OTC) contract is a bi-lateral contract
in which two parties agree on how a particular trade or
agreement is to be settled in the future. For derivatives,
these agreements are usually governed by an International
Swaps and Derivatives Association agreement.
An over-the-counter (OTC) market is a financial market
where products are traded over-the-counter.
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