What is the difference between exchanged traded markets and over the counter markets?
The terms exchange traded and over the counter markets (OTC) are used frequently in the financial world but what do they both mean? Exchange traded market In an exchange traded market, there is an intermediary which acts as centralized organization. They can link up buyers and sellers of a product. Contracts are be standardized and there are rules and regulations for trading. Exchange traded instruments are highly liquid so it makes it easier for investors to buy and sell their …
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