OTC trading

In OTC trading, buyers and sellers directly negotiate with each other, often with the help of brokers or other intermediaries, rather than through a centralized exchange.

OTC trading is typically used for assets that are not listed on formal exchanges, are illiquid, or have specific trading requirements that cannot be easily met through a traditional exchange.

For example, many large institutional investors prefer to trade OTC for larger transactions, as it provides more privacy, flexibility, and lower transaction costs than traditional exchange-based trading.