Posted by Svetlana Tokunova
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Over The Counter (OTC), also known as off-exchange trading, is trading financial instruments such as stocks, bonds, or commodities directly between two parties. OTC contracts are bilateral contracts in which two parties agree on how a particular trade or agreement is to be settled in the future as opposed to exchange traded contracts, which take place in a location established for the purpose of trading such as commodity futures exchanges or stock exchanges. Forwards and swaps are main examples of such contracts.

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