Flux Markets | OTC Skip to main content

OTC

Over the counter market where contracts are privately negotiated rather than traded on an organized exchange.

OTC (Over-the-Counter) describes trading of financial instruments directly between counterparties, bypassing formal exchanges.

In oil markets, OTC trades allow bespoke swaps, forwards, and options tailored to quantity, quality, and delivery. This provides flexibility beyond standardized contracts.

OTC trades carry counterparty risk, requiring due diligence, credit support, and collateral agreements. Transparency may be lower than exchange-traded instruments.

OTC markets are vital for hedging, complex structures, and large-scale commodity transactions.

Flux Markets
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.