I just noticed that someone asked about what OTC trading stands for and how it works. If you're interested in informal trading, you should know about this because it’s quite different from regular trading.

OTC stands for Over-the-Counter, which is the exchange of assets directly between buyers and sellers without going through a centralized exchange system that we’re familiar with. The OTC system is based on the idea of decentralization, offering more flexibility and not requiring intermediaries. This type of trading can be used for everything from stocks, bonds, commodities, forex, to cryptocurrencies.

What makes OTC interesting is its flexibility in timing, allowing trading 24 hours a day without waiting for the market to open. All exchange agreements are negotiated directly between the two parties, with no strict standards, making it accessible for smaller companies that don’t want to list on stock exchanges.

For forex and CFDs, OTC can also be used because there are no time restrictions, and traders can directly contact buyers and sellers through platforms without involving central banks. This means OTC offers greater independence in trading.

However, there are pros and cons. The advantages include lower fees, access to securities not available on actual markets, and the potential for higher profits. The disadvantages are higher risks due to lack of government oversight, potential for scams, and some OTC-trading companies that don’t meet international standards may have low stock prices and high volatility.

Generally, OTC involves higher risk, so before investing, it’s important to study thoroughly and consider whether it suits you. Everyone has different risk tolerances. Check out more information on Gate if you’re interested in related assets.