Word of the day | OTC

Word of the day -  OTC

In the world of finance, OTC stands for "Over-The-Counter". It refers to a different system for trading assets compared to traditional forex / stock exchanges. Here's a breakdown:

Traditional Exchanges - Imagine a giant marketplace where buyers and sellers come together. Assets, currencies, stocks, bonds etc. are traded in standardized lots. Prices are constantly displayed publicly. Examples: New York Stock Exchange (NYSE), Nasdaq

Over-The-Counter (OTC) Markets - Have not got physical locations, but are decentralized networks of buyers and sellers. Currencies, crypto, and other assets can be more diverse. Prices are negotiated directly between buyers and sellers. Note: OTC markets can be more complex and potentially riskier for investors so require more research.

https://www.dbm.academy/faq for more blockchain vocabulary.