OTC trading is translated to trading over-the-counter. Traditionally, it meant trading in the markets where it was possible to sell or buy the shares of the firms that had controversial fame or did not publish their profits. But recently, OTC trading has expanded significantly. For example, a new blockchain type has emerged. Moreover, it becomes feasible to trade classic instruments as OTC.
Key Takeaways🔑
| →eToro is a popular investment platform that has proven reliable for millions of users worldwide. |
| →The platform offers a wide range of assets, social trading features, and educational resources for users. |
| →Always perform your own research and analysis before investing on any platform, including eToro. |
Contents
Introduction to OTC trading
The market where you can trade over-the-counter is a decentralised system of the institutions such as traders, brokers, liquidity providers or market makers that opens the transactions constantly including during weekends.
There are fewer participants in the OTC markets so the prices are more dynamic. They can be different in comparison to market prices.
Trading OTC is buying and selling the assets beyond usual platforms and trading hours.
OTC assets available on the Olymp Trade platform
To see what assets are available for trading over-the-counter on the Olymp Trade platform go to the Fixed Time tab and simply choose OTC. The list of the instruments offered will be displayed.
Olymp Trade provides 8 OTC assets. These are GBPUSD, AUDUSD, EURUSD, USDCAD, USDCHF, NZDUSD, Gold and USDJPY. They are available for Fixed Time Trades.
You will see the rate of a return next to each asset. If you wish to get more information about one type of instrument, click the information icon on the right side.
Usually, you can trade on forex from 21:00 UTC Sunday until 21:00 UTC Friday constantly. OTC assets can be traded during the weekends. The session begins immediately when the main session closes which is at 21:00 UTC Friday. It remains open for 48 hours.
To check the precise schedule for the time zone you are trading from, read the specific information about a particular asset.
Remember, you can trade cryptocurrencies during weekends on the Olymp Trade platform as well. Just make sure you do not trade all the time. Trading is a business that requires a lot of attention from you. It is wise to take a break from time to time. It will give you a necessary perspective and you will come back to the trading session with a calm mind.
Pros and Cons 📊
Pros 👍:
- ✅ eToro is a trusted and popular investment platform with a large user base.
- ✅ Wide range of assets available for trading, providing diverse investment opportunities.
- ✅ Social trading features allow users to learn from and copy the trades of successful traders.
- ✅ Educational resources and tools offered by eToro help users improve their trading knowledge and skills.
Cons 👎:
- ❌ Trading involves risk, and users should be aware of the potential for losses.
- ❌ Market volatility can affect investment returns, and users should be prepared for fluctuations.
- ❌ eToro may have certain limitations or restrictions based on your country of residence.
- ❌ It’s important to conduct thorough research and analysis before making any investment decisions.
| Asset | Description |
|---|---|
| GBPUSD | Trading pair of British Pound (GBP) and US Dollar (USD) |
| AUDUSD | Trading pair of Australian Dollar (AUD) and US Dollar (USD) |
| EURUSD | Trading pair of Euro (EUR) and US Dollar (USD) |
| USDCAD | Trading pair of US Dollar (USD) and Canadian Dollar (CAD) |
| USDCHF | Trading pair of US Dollar (USD) and Swiss Franc (CHF) |
| NZDUSD | Trading pair of New Zealand Dollar (NZD) and US Dollar (USD) |
| Gold | Precious metal, commonly used as a store of value and for hedging against inflation |
| USDJPY | Trading pair of US Dollar (USD) and Japanese Yen (JPY) |
Conclusion
Olymp Trade platform offers its customers the unique possibility to trade 7 days a week without interruption. The main session begins in the late Sunday hours and ends on Friday. But you can still trade cryptocurrencies and OTC assets on the weekends.
There are 8 instruments available at Olymp Trade for over-the-counter trading. They can be found in the Fixed Time Trades mode.
Stay focus while trading but do not forget about rest. Take regular breaks to avoid emotional trading.
Use the Olymp Trade demo account wisely. You can always come back there when there is a new asset or a strategy you would like to try.
Do you have any experience in OTC trading? Any thoughts on the topic you would like to share? Below, you will find the comments section which is a perfect place to do that.
Good luck!
FAQs 📝
- Q: What is OTC trading?
- A: OTC trading refers to trading over-the-counter, which involves buying and selling assets directly between two parties without the involvement of a centralized exchange.
- Q: How does OTC trading work on the Olymp Trade platform?
- A: Olymp Trade offers OTC trading for selected assets, including currency pairs and commodities. Users can access OTC trading through the Fixed Time Trades mode and trade during weekends when traditional markets are closed.
- Q: What are the advantages of OTC trading?
- A: OTC trading provides extended trading hours and greater flexibility, allowing users to trade even when traditional markets are closed. It offers opportunities to react to market events and access specific assets outside regular trading sessions.
- Q: What are the risks associated with OTC trading?
- A: OTC trading carries similar risks to traditional trading, including market volatility and the potential for losses. Users should carefully analyze market conditions and implement risk management strategies.
- Q: Can I trade cryptocurrencies during weekends on the Olymp Trade platform?
- A: Yes, Olymp Trade allows trading of cryptocurrencies during weekends, providing an opportunity to trade digital assets even when traditional markets are closed.