OTC Trading and how it Works

OTC stands for over-the-counter. In terms of trading, ORC means trading through decentralized dealer networks. A decentralized maker is a maker structure consisting of various technical devices. This structure allows investors to create a marketplace without a central location. The opposite of OTC trading is exchange trading, which takes place via a centralized exchange. In short, OTC lets you Trade large amounts of crypto seamlessly.

Benefits of OTC Trading

The OTC market also consists of shares of companies that do not wish to meet strict exchange requirements. Some businesses do not want to pay the cost the exchanges charge. The NYSE has a schedule of fees and charges for its exchange services. Administrative fees, listing fees, and other charges exist.

OTC transactions are free from exchange fees. The OTC market helps companies and institutions promote equity or financial instruments that can’t meet the requirements of other regulated exchanges.

The OTC market can easily be split into two categories, these include:

The Customer market: where dealers trade amongst each other.

The Inter-Dealer market: where dealers trade amongst each other.

What Are the Risks of OTC Trading?

The OTC markets have experienced improvements in recent years. However, the OTC markets are still characterized by risks that may be less prevalent in other exchanges.


Investors may see additional risk when trading OTC. Although brokers and dealers operating in the US OTC markets are regulated, and thus these exchanges are subject to more stringent regulation than OTC markets.


OTC prices are not disclosed publicly until after all the trades are complete. Thus, a trade can be executed between two parties via an OTC market without others being aware of the price point. This lack of transparency can cause investors to see adverse conditions

OTC prices are not disclosed publicly until after the trade is complete. Therefore, a trade can be executed between two parties via an OTC market without others being aware of the


Another factor with OTC stocks is that they can be volatile and unpredictable. OTC can also be subject to market manipulation, so risk management techniques are recommended.

Use Swyftx

An Australian-owned and operated cryptocurrency exchange, Swyftx is an exchange that allows users to buy digital assets such as Bitcoin, XRO, and Ethereum as well as over 300 digital assets. Swyftx offers OTC trading series to certain individuals, SMSFS, and institutional clients as well.

Benefits of Swyftx OTC

The OTC markets have many positives that many investors utilize already.

Deep Global Liquidity

Swyftx has access to a wide network of global liquidity providers, meaning we can execute substantial OTC trades over $100,000 with minimal spreads.

Quick and Flexible Settlements

OTC desk trades are flexible and settled immediately, all assets can be immediately accessed after settlement.

Industry Leading Experts

Swyftx provides a truly end-to-end service to its OTC clients. This involved an initial consultation, trade execution, and ongoing support.

Secure Account Management

Swyftx implements a great number of protective measures to ensure the safety and security of clients’ funds.

Seamless UI

The online platform features easy-to-use interfaces which allow for easy navigation on both mobile and desktop applications.

Low Fees

In charging fewer fees on Crypto and Bitcoin OTC, Swyftx outdoes its competitors.

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