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Table of Contents
OTC Market
OTC stands for Over-The-Counter trading. OTC market are decentralized markets and are less transparent and are subject to less regulations. Trades are often done directly by the two participants without publicly disclosing the exact details of the trade. In the US, registered broker-dealers act as market maker using inter-dealer quotation services such as OTC Link (a service offered by OTC Markets Group) and the OTC Bulletin Board (OTCBB, operated by FINRA).
Many financial instruments are traded on OTC markets, including national, regional or foreign equity issues, warrants, units, American Depository Receipts (ADRs), and Direct Participation Programs (DPPs). Although stock quoted on OTCBB must comply with SEC reporting requirement. Other OTC stocks have limited or no disclosure requirements. OTC Link has three sub-segments, in order of descending regulatory filing requirement are: OTCQB, OTCQX, and OTC Pink. Securities not listed on exchanges or quoted on OTC markets or OTCBB are considered to be on the Grey Market.
Homepage
Bulletin Board
Currency: US Dollar (USD)
Trading Hours & Calendar
Trading Summary
Trading OTC quoted symbols are just the same as trading symbols listed on exchanges.
Lit Order-types
- Limit Order
- Market Order
Dark Order-types
Available ATS
Basic Market Rules
- Lot Size - lot size for securities is 1 share
- Tick Size - same as the exchange where the stock is listed
- Short Sell is allowed
For more information about rule on trading on OTC Markets, please see here