What does OTC trading mean? OTC trading platform recommendation 2024

Over-the-counter (OTC) refers to the trading of financial instruments outside the exchange, providing a customized trading experience for institutional investors and retail investors. Currently well-regarded OTC trading platforms include Genesis Trading, Kraken OTC, Alameda Research, Amber Group and FalconX. The advantages of OTC trading are flexibility, privacy, liquidity and customization, but it also has disadvantages such as reverse selection, regulatory risks and higher transaction costs. When choosing an OTC trading platform, factors such as reputation, liquidity, supporting assets, fees, and customer support are crucial.

OTC trading: in-depth understanding and recommended platform in 2024

1. What is OTC trading?

Over-the-counter (OTC) trading refers to the buying and selling of financial instruments outside of an exchange. This trading method is mainly aimed at institutional investors and retail investors, providing a more flexible and customized trading experience.

2. OTC trading platform recommendations 2024

The following are some highly praised OTC trading platforms that are expected to maintain their leading position in 2024:

• Genesis Trading: A leading cryptocurrency OTC liquidity provider, focusing on institutional trading.
• Kraken OTC: The OTC platform under Kraken exchange, providing a wide range of cryptocurrency and fiat currency pairs.
• Alameda Research: A quantitative hedge fund mainly engaged in cryptocurrency OTC trading.
• Amber Group: A cryptocurrency OTC platform focusing on the Asian market.
• FalconX: An efficient and convenient cryptocurrency OTC trading platform.

3. Advantages of OTC trading

• Flexibility: Allows traders to negotiate customized terms and transaction sizes.
• Privacy: Transaction information is not disclosed on the exchange, providing higher privacy.
• Liquidity: Provides deeper liquidity by connecting multiple market participants.
• Customization: Traders can tailor their trades to their specific needs.

4. Disadvantages of OTC trading

• Reverse selection: OTC trading is prone to adverse selection, that is, counterparty One party trades using the advantage of information.
• Regulatory Risk: OTC trading tends to be less regulated and therefore carries higher counterparty risk.
• Transaction Costs: OTC trading generally has higher fees than exchange trading.

When choosing an OTC trading platform, it is important to consider the following factors:

• Reputation and reputation
• Depth of liquidity
• Supported Assets
• Fee Structure
• Customer Support

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