OTC (Off the Counter)

OTC trading on the stock market refers to the trading of securities that is not conducted through an official exchange. OTC trading takes place directly between buyers and sellers, often through an electronic network or a broker. OTC trading can be used for companies that are not listed on an exchange or for rare and complex securities such as derivatives or bonds.

For retail investors, OTC trading can be riskier than trading on an exchange because the trading is less regulated and transparent. It can be more difficult to determine the true market value of a security and there is a higher risk of fraud or market manipulation. Therefore, retail investors should educate themselves thoroughly before trading in the OTC market and may consider consulting a professional advisor.