OTC stands for over-the-counter. In trading terms, over-the-counter means trading through decentralised dealer networks. A decentralised market is simply a market 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 centralised exchange.
An example of OTC trading is a share, currency, or other financial instrument being bought through a dealer, either by telephone or electronically. Business is typically conducted by telephone, email and dedicated computer networks.
