OTC (Over-The-Counter) refers to trading that occurs directly between two parties without the supervision of an exchange. Key features: - Direct trading between parties - Usually for large transactions - Customized terms possible - Less transparent than exchange trading - Often used for: * Large block trades * Illiquid assets * Institutional trading * Cryptocurrency deals Characteristics: - Higher minimum trade sizes - Personalized service - Price negotiation - Private transactions - Different pricing than exchanges Benefits include more privacy, potential better pricing for large orders, and ability to handle significant volume without affecting market prices, though with less transparency than exchange-based trading.