What does the abbreviation OTC stand for?

[Eve Melin]

Business English Lesson, Advanced Level

ESL/EFL Test #384 "Derivatives Primer", question 1

The purpose of this primer is to clarify some of the key characteristics of the over-the-......... (OTC) derivatives markets.

(a) column
(b) counter
(c) country
(d) course

Business English Lesson, Advanced Level

ESL/EFL Test #384 "Derivatives Primer", answer 1

The purpose of this primer is to clarify some of the key characteristics of the over-the-counter (OTC) derivatives markets.

Correct answer: (b) counter
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Could y please explain this OTC to me?
Thankyou

Eve Melin

[Mister Micawber]

.
OTC is simply the acronym used by financiers for 'over-the-counter'.

"Over-the-Counter (OTC) derivatives are financial contracts whose value is based on the performance of and underlying asset such as a stock, bond or an index such as the Dow Jones Industrial. In contrast to exchange-traded derivatives such as futures contracts, OTC derivatives are customized contracts provided directly by dealers to end-users or other dealers."
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Native English teacher at Mister Micawber's