I just noticed that many people are asking about OTC or over-the-counter in the trader groups, so I’d like to share my understanding of this topic.

Simply put, over-the-counter is trading conducted directly between the buyer and the seller, without going through a centralized exchange like a traditional stock market. The decentralized nature of OTC makes transactions more convenient, with no middlemen blocking the way.

What’s interesting is that over-the-counter can be used for all types of investments, whether it's Forex, CFDs, cryptocurrencies, or commodities, because both parties can agree on the exchange terms themselves.

OTC trading offers much higher flexibility than traditional markets. It can operate 24 hours a day, without waiting for market open or close, and generally has better liquidity. Additionally, it allows access to securities not listed on standard exchanges, such as bonds or derivatives.

However, there are risks to watch out for. OTC is not regulated by governments or financial institutions like formal markets are. The risk of scams or hacking is higher, and since some companies don’t meet international standards, the OTC market can sometimes lack trustworthiness.

Stocks traded OTC are often priced lower and tend to be more volatile. Therefore, thorough research before investing is very important. It’s crucial to consider whether over-the-counter trading suits your trading style, because all investments carry risks.