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Why Do Institutional Traders Prefer the Customization Offered by OTC Markets?

They need to execute complex, tailored hedging or speculative strategies with non-standard terms not available on exchanges.
Greeks.Live23.11.25

Why Do Institutional Traders Prefer the Customization Offered by OTC Markets?

Institutional traders prefer customization because they often need to execute complex hedging strategies that require non-standard strike prices, expiration dates, or unique underlying assets that are not available on centralized exchanges. OTC allows them to tailor a contract precisely to their specific risk exposure or investment thesis.

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