Trading Glossary

Over-The-Counter (OTC)

Over the Counter is the security that are normally traded to the trader network rarher than the centralized to the exchange to the New York Stock Exchange. These securities are referred to as “over-the-counter” as they are traded directly between two parties rather than being listed on a central exchange. The each trade is an individual that contrect between the two counterparties that making the Trade.This legislation is designed to limit the threat of default in the OTC derivatives market and therefore reduce the risk of another financial crisis.