Derivatives · glossary

Over-the-counter (OTC) v exchange-traded

An over-the-counter trade is a private contract with one named bank, on your own amounts and dates. An exchange-traded contract is standard and cleared through a hub. Both of Atlas's trades were over the counter, so Atlas relies on the bank's own promise to pay. Chapter 1 · Chapter 14

Explained in Chapter 1, What a Derivative Is, of Derivatives.

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