Over The Counter (OTC for short) refers to over-the-counter trading, also known as direct trading. Trading OTC stocks is a topic that investors can find attractive. But what exactly is over-the-counter trading?

OTC stands for „Over The Counter“. The term has become established for trading outside the stock exchanges and describes the direct trading of shares and securities between sellers and buyers on the capital markets.

Alternatively, OTC trading is also called over-the-counter or direct trading. Unlike stock exchange trading, over-the-counter trading is not subject to stock exchange supervision and is not monitored by the state. However, the legal provisions for securities trading also apply to OTC trading in securities.