Definitions for "Over the Counter"
Keywords:  otc, nasd, forex, counter, dealer
The market in shares not listed on the Stock Exchange.
Over the Counter, the term used to describe the trading of futures and options outside a regulated stock exchange. Trade is directly between buyers and sellers and there is no standardization of strikes or expirations.
(OTC) Market where traders are connected through computer networks and telephones and conduct trading through these mechanisms rather than on the floor of an exchange. Rules for OTC trading are written and enforced by the National Association of Securities Dealers (NASD) in the U.S.
is the market where two willing counterparties agree to enter into a contract together brought together by a broker
Bilateral markets in which contracts for futures, options and swaps are written on a tailor-made basis. futures/options/swaps
Keywords:  drafts, merchant, submit, actual, local
Indicates merchants that submit actual sales drafts for payment (paper merchant) to a local bank for payment.