Over the Counter (OTC)
Over-the-counter is an informal or decentralized trading , There are no fixed trading sessions and no central matchmaking.
Over-the-counter (OTC) trading is the process of trading financial instruments without centralized trading like trading on official markets such as the NYSE (The New York Stock Exchange) or the SET (The Stock Exchange of Thailand). Over-the-counter markets can trade in stocks, bonds, derivatives or currencies, where buyers and sellers trade directly, so there is a counterparty risk that buyers and sellers do at their own risk.
In the OTC market, Dealers act as an intermediary for accepting and matching those orders electronically. The trades can take place immediately without the other traders knowing the price of the transaction at which the transaction took place. Therefore, in the OTC market, transparency is less than intermediary trading in the official market. and has less strict rules than the official market.