Can Options and Derivatives Be Traded via OTC Desks More Easily than on Exchanges? ▴ Learn

Can Options and Derivatives Be Traded via OTC Desks More Easily than on Exchanges?

Yes, options and derivatives are often traded via OTC desks, especially for highly customized or complex contracts. OTC desks offer greater flexibility in terms of contract size, expiration dates, and underlying assets than standardized exchange-traded derivatives.

This customization is essential for institutional hedging and specialized risk management strategies. However, OTC trading involves higher counterparty risk and less transparency.

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