OTC (over-the-counter transaction), also known as over-the-counter transaction or over-the-counter transaction, refers to the spot foreign exchange transaction conducted by the trading subject in the inter-bank foreign exchange market through independent bilateral inquiry and bilateral settlement on the basis of bilateral credit. Over-the-counter transactions often occur when the supply of goods is in short supply or some regulations at the supply and marketing meeting are unreasonable. It is easy to create unhealthy trends and even provide opportunities for speculators. To put an end to over-the-counter transactions, fundamentally speaking, it is necessary to establish and maintain the coordination of the proportion of supply and demand of commodities. On-site trading, also known as exchange trading, refers to the trading mode in which all supply and demand sides concentrate on the exchange for bidding trading. The characteristic of this trading method is that the exchange collects the deposit from the trading participants, and is also responsible for liquidation and performance guarantee. In addition, due to the different needs of each investor, the exchange designs standardized financial contracts in advance, and investors choose the contracts and quantities closest to their own needs for trading. All traders are concentrated in one place, which increases the density of transactions and generally forms a highly liquid market. Futures trading and some standardized option contract trading all belong to this trading mode. The English-Chinese Dictionary of Bond Investment by the Commercial Press explains that OTC English is: OTC; ; OTC. Name. Countless.

(1) generally refers to transactions conducted outside formal trading institutions, such as transactions conducted by computers and telephones; Trading after normal trading hours, that is, after the market closes.

(2) Trading behavior before the birth of American Stock Exchange. At that time, those stocks that failed to meet the NYSE listing standards were all traded by scalpers on the road outside the NYSE, and eventually formed the second largest exchange in the United States. See: Cumulative Market. OTC, also known as OTC, refers to the way in which both parties directly become counterparties. There are many forms of this transaction, and products with different contents can be designed according to the different needs of each user. At the same time, in order to meet the specific requirements of customers, financial institutions selling derivatives need to have superb financial technology and risk management capabilities. Over-the-counter transactions constantly produce financial innovations. However, because the liquidation of each transaction is carried out by both parties, the participants in the transaction are limited to customers with high credit. Swaps and forwards are representative derivatives of OTC transactions.