Over-the-counter market
An over-the-counter, or OTC, market is one where participants trade through dealer networks or bilateral arrangements rather than a centralised exchange. Prices, contract terms, transparency, and counterparty arrangements can differ; OTC trading is not necessarily unregulated.
In an illustrative OTC transaction, a company agrees a currency forward with a bank, specifying the amount and settlement date rather than trading an exchange-listed contract.
Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Glossary definitions are general education only and are not investment advice. Risk disclosure