OTC, or Over The Counter, refers to trading that occurs directly between two parties without a centralized exchange. In this setup, transactions are typically facilitated by brokers who connect buyers and sellers, allowing for more personalized trade experiences.OTC trading is particularly useful for large transactions, known as “block trades,” which can be difficult to execute on standard exchanges without affecting market prices. By using OTC services, traders can avoid slippage—when the buying or selling price shifts unfavorably during the process.This method also offers greater privacy since transactions do not have to be publicly recorded on an exchange. Many institutional investors and high-net-worth individuals prefer OTC trading for its efficiency and discretion. However, it’s essential to conduct due diligence and ensure that the OTC service is reputable, as the lack of regulation can expose traders to higher risks.