OTC has a particular significance in relation to IG's platform.

OTC stands for over-the-counter, and refers to a trade that is not made on a formal exchange. It is often also referred to as off-exchange trading. Usually, the firms offering OTC trades will quote the prices at which they are willing to buy or sell assets, giving one price for each trade.

This differs from on-exchange trades, where many buy and sell prices can be seen from a variety of different sources.

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The most popular OTC market in trading is forex , where currencies are exchanged between parties directly instead of on exchanges. Shares are often traded OTC as well as on exchanges.

Some businesses, for example, sell their shares away from recognised exchanges. There are also networks and market makers that allow the trading of shares away from exchanges.

These include multilateral trading facilities, dark pools and lit pools. Derivatives and bonds are also commonly traded over-the-counter, although different instruments will be traded in different ways. IG offers both OTC and on-exchange via our DMA service trading on forex and shares, allowing you to choose whether you trade at our price or view all available options on order books.

Spread bets and CFDs are leveraged products and can result in losses that exceed deposits. The value of shares, ETFs and ETCs bought through a share dealing account, a stocks and shares ISA or a SIPP can fall as well as rise, which could mean getting back less than you originally put in.

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Please ensure you fully understand the risks and take care to manage your exposure. CFD, share dealing and stocks and shares ISA accounts provided by IG Markets Ltd, spread betting provided by IG Index Ltd.

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Losses can exceed deposits. OTC definition All trading involves risk. With IG IG offers both OTC and on-exchange via our DMA service trading on forex and shares, allowing you to choose whether you trade at our price or view all available options on order books.

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Understanding the Over the Counter Trading or OTC in Forex Market

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