OTCVerträge
OTCVerträge, or Over-The-Counter (OTC) contracts, are agreements between two parties that are not traded on an exchange. These contracts are tailored to the specific needs of the parties involved and can cover a wide range of financial instruments, including commodities, currencies, interest rates, and derivatives. OTC contracts are often used by large corporations, financial institutions, and governments to manage risk and hedge against market fluctuations.
One of the key features of OTC contracts is their customizability. Unlike exchange-traded contracts, which are
OTC contracts are typically settled through cash or physical delivery, depending on the nature of the underlying
The counterparty risk is a significant consideration in OTC contracts. Since these contracts are not traded
OTC contracts are regulated by various financial authorities, including the Federal Reserve in the United States
In summary, OTCVerträge are customized financial agreements between two parties that are not traded on an exchange.