In the section on the Alphabet Of Trading, you will find definitions of the Exchange and Over-the-Counter (OTC) market. Now, let’s talk about the differences between these platforms.

The main differences between exchange and OTC platforms, in my opinion, are:

• The lack of regulation on OTC platforms;

• Flexibility in contract size and contract price on OTC markets;

• Different transaction costs;

• Different levels of transparency due to flexibility;

• Different execution methods.

Each of these properties has its pros and cons. For example, transaction transparency provides an excellent opportunity to challenge an improperly executed order. The flexibility inherent in OTC markets allows you to reduce transaction costs or choose a more convenient volume or contract term. In general, it all depends on specific goals, and a full understanding of which market is better for you will come only with experience.