When investors discover promising companies but cannot find them on major exchanges, the OTC market becomes another important option. The OTC market (Over-The-Counter) offers a wider range of investment products, customizable trading methods, and more flexible trading sizes, but also comes with higher risks and challenges. This article will provide a comprehensive analysis of how the OTC market operates, compare its advantages and disadvantages, and highlight key points for safe trading.
What is the OTC market? The core concept of over-the-counter trading
The full name of the OTC market is "Over The Counter," which in Chinese is "場外交易," referring to transactions where investors do not trade on centralized markets (such as stock exchanges), but instead buy and sell securities and other products through dispersed channels like banks, brokerages, phone, and electronic systems. The OTC market is also known as "over-the-counter trading," "desk trading," or "over-the-counter market."