The over-the-counter market, also known as the over-the-counter market, is completely different from the exchange market. The
OTC market has no fixed trading venues, no prescribed memberships, no set of strictly controlled rules system, no prescribed trading products and restrictions , Mainly one-to-one transactions, the counterparty conducts through private negotiation.
What is over-the-counter (OTC)?
The OTC market (Over-the-Counter) is also known as the over-the-counter market, or OTC market for short, which refers to transactions that are carried out outside the exchange. The over-the-counter market first emerged in the US stock market in the early 20th century. At that time, many securities in the US were not traded on stock exchanges. Investors bought and sold securities through the counter of banks or brokers, which gave rise to the name of counter trading.
Unlike electronic transactions, which are centralized in the open market, OTC is a non-public market transaction that is carried out off-exchange. One of its typical trading modes is that an over-the-counter broker (Inter Dealer Broker, IDB) acts as an intermediary to inquire about prices and purchases from customers through telephones, instant messaging tools and other communication methods. Finally, the broker conducts transactions between buyers and sellers through manual matching. And pay a commission to the broker as a reward. This shows that OTC trading is a one-to-one transaction, which is carried out in a non-public market. Its advantage is that the transaction method and transaction object can be very flexible, and it is very conducive to one-time large transactions.
What is OTC OTC system?
First, the OTC trading system is a form of digital asset transactions between individuals, and the platform only acts as an intermediate guarantor. Don't accept funds for trading, which can avoid policy risks well and also meet the trading needs of many players. OTC OTC platform can also attract more users to join through a series of innovative regulations. Its main function is to provide a channel between entrance and exit. In addition, the OTC OTC system not only has good flexibility, but also has strong privacy, allowing a large number of transactions.
What are the advantages of the OTC trading system?
Simplified transactions: implement peer-to-peer transactions. The transaction needs of the platform can be summarized to facilitate everyone's transactions; the
second is to verify the identity of the buyer and the seller, which is more secure;
when a dispute occurs, the platform can be resolved by filing a lawsuit; a
large number of digital currencies with locked prices can be purchased at one time: for example You want to buy 10,000 coins. Binance, Huobi, etc. traded on the market will not be available in the short term, and the price will also be pushed up. However, OTC's point-to-point transaction method can lock the price and complete the transaction at one time. The result is that billionaire traders and institutions rely on the OTC market to buy and sell BTC and other cryptocurrencies.
As we all know, as long as it is meaningful, it must be carefully considered. But even so, the emergence of OTC trading system still has a certain significance. At present, it is very important to solve the problem of OTC trading system. Therefore, it is necessary to think clearly about the existence of the OTC trading system. All in all, figuring out how the OTC trading system exists is the key to solving all problems.