Speaking of otc, it is estimated that many people don’t know what it means. After all, many people are unfamiliar with this word and don’t know what the word means, so let’s briefly talk about what otc means? What are the otc trading markets?
What does FX otc mean?
The full name of otc in English is Over-the-counter (financial), which is the so-called over-the-counter market. It is also usually called the over-the-counter market, and some people call it the storefront market. In simple terms, the otc market is a market where both buyers and sellers of securities discuss prices and trade in person, which is different from an exchange or a fixed bank exchange. The otc market is mainly for securities trading. Generally speaking, it is mainly national securities, and there are relatively few stock transactions. Moreover, the securities that are traded in this market are all securities that cannot be listed on the stock exchange, or are not in line with securities trading. Standard stocks listed.
Although many people don’t know what otc means? What are the otc trading markets? However, it is not difficult to understand this market. After all, the otc method is the most important form of organization in the foreign exchange market. It is different from the traditional market, because this market does not have a practical central trading place. Most of the transactions are conducted through the telephone or the Internet, and there is no unified venue at all. Simply put, there is a market without a venue.
Of course, the otc market is not open to everyone. It is only open to institutions with large transaction volume or high net worth. It is similar to the inter-bank market, but it is different from the inter-bank market. They have the same characteristics.
The future of OTC trading
Five years ago, the cryptocurrency OTC trading desk did not have the current structure and scale. Today, there are multiple Bitcoin OTC counters around the world, with an annual transaction volume of billions of dollars-this reflects that since the launch of the Bitcoin network 10 years ago, the cryptocurrency OTC industry has grown to a large extent Has grown. Nowadays, when on-exchange transactions involve the suspension of capital exchange, over-the-counter transactions have become very popular. With the cleanup of domestic ICO and Bitcoin transactions in September 2017, over-the-counter transactions prospered once again. From the transaction data of LocalBitcoin and Paxful, the share of BTC-CNY OTC transactions in its total Bitcoin OTC transactions has risen from about 5% to about 20%.
Although the multi-billion-dollar transaction volume handled by cryptocurrency OTC counters is still insignificant compared with the trillion-dollar annual transaction volume achieved by traditional OTC trading desks, the industry still has huge room for growth. With the growth of existing crypto assets and the introduction of new assets, over-the-counter trading desks will continue to promote transactions in the entire cryptocurrency field behind the scenes.