Trading can show its strictest form when we see the involvement of the exchanges such as the New York Stocks Exchange, Bombay Stock Exchange, etc. Other exchanges exist depending on the asset you wish to trade with. In all the cases when you have to trade through an exchange, there are strict rules which you need to follow.
Even the brokers and companies have to abide by the strict guidelines of the exchanges. As far as that may sound like a safety measure, it also limits trading possibilities to a certain limit. Due to its stringent nature, both buyers and sellers have to limit themselves on various fronts. For example, they can trade only a fixed number of assets during fixed working hours.
That is where OTC trading can serve as a better form of trading. It can eliminate those restrictions and provide a more liberal form of trading. However, not all trading brokers can provide this facility. So, if you are trading with a top broker like Expert Option, you must first ensure whether it offers OTC trading over the weekend.
Here we will discuss all a trader should know about Expert Option OTC.
What you will read in this Post
(Risk warning: Your capital can be at risk)
Is Expert Option OTC available?
Expert Option is a broker that stands at par with the top players in the industry. So, it does not restrict its traders from growing in any manner.
OTC trading can be a great way to expand the trading portfolio. It is conducted through a decentralized market which mainly consists of institutions that include traders, liquidity providers, brokers, etc. Through OTC trading, you can enter a marketplace where there is reduced competition and dynamic prices.
It allows a trader to add on extra hours through trading assets, even on weekends. That is because the proprietors of the OTC market open it beyond the usual market hours of the exchanges. So, a trader gets the additional opportunity to grow in her trading journey through its help.
Now, not many brokers allow their traders to earn more than what the usual market hours permit. However, with Expert Option, they can aim to do so. Expert Option provides OTC trading through its fixed time assets, which you can view through its platform. So, before knowing more about OTC trading and its market, let us first know how you can trade OTC over the weekend with this broker.
(Risk warning: Your capital can be at risk)
How to trade Expert Option OTC during weekends?
Expert Option provides the chance to trade OTC through its platform to those traders who wish to continue trading throughout the weekends. Usually, after the standard market hours, no assets or exchanges are available for trading as per the rules. But, since the OTC market is decentralized, such rules do not apply to it and can be traded during the weekends as well. Expert Option provides the OTC facility starting from Friday itself, and it ends on Sunday of the same week.
An OTC trader can expect to trade constantly once it commences the facility. It begins at sharp 21:00 UTC Friday and stays open until 21:00 UTC Sunday. The trader just has to go through 3 simple steps to avail of the OTC trades:
- Firstly, navigate to the Expert Option platform’s fixed-time trades option. You can do that after logging into the account on any device. Expert Option offers the same service features through all its software.
- Next, pick the asset you wish to trade with. About 8 assets shall be available exclusively for the OTC trades. You can choose any of them after scrutinizing their rate of returns.
- Lastly, start trading those assets with the participants of the OTC market during the weekend hours. The OTC session shall begin when the regular market session adjourns for the week.
Once Expert Option OTC commences, it will stay active for the next 48 hours straight. So, you can decide and trade during that duration. With Expert Option, crypto trading is also available with OTC on weekends.
Once you start winning the OTC trades, you can add the profits into your trading account like usual. You can withdraw them using any of the 20+ integrated payment methods available with the platform.
Winning OTC trades will allow the traders to earn more for a week than other traders who do not use it.
But, by doing so, a trader must not become overenthusiastic and get overpowered with happy emotions. Due to the benefits of OTC trading, a trader should not swap to emotional trading. She should try to stay in a rational mindset.
It is also advisable to avoid trading all the assets together in one shot. Moreover, continuously trading online can give your physical and mental health a tough time. So, you must make sure to take periodic breaks and recovery time. That will help your mind stay calm and focused and trade efficiently.
(Risk warning: Your capital can be at risk)
What does OTC signify?
OTC is the acronym for Over the Counter. It signifies the trading that takes place through decentralized market mechanisms. Such trading differs from the usual trading as there are no exchanges for OTC. This decentralized structure is mainly composed of brokers, dealers, and traders. It allows the dealing to occur directly without any involvement of a central exchange.
The trades occur directly through negotiation over the telephone or other electronic devices. The main benefit is that, unlike exchange trading, OTC trading allows the participants to create an independent marketplace. Such a marketplace being devoid of a central location can better serve both buyers and sellers. In such a setup, even companies that miss getting listed on the exchanges get the opportunity to sell their stocks. Moreover, the buyer gets the advantage of getting additional stock choices at cheaper rates.
The OTC business is dependent on computer networks and offers reduced competition. As a result, the prices are more flexible than in the exchange markets. Also, many brokers provide the opportunity to trade OTC during weekends, allowing a breakless trading mechanism. It is beneficial for both ambitious traders and brokers.
(Risk warning: Your capital can be at risk)
Risks of OTC
OTC can become a double-edged sword at times due to various reasons. First of all, the decentralized structure is both beneficial and risky. So let us view the usual risks that a trader must be aware of:
Issues with the transparency
Being decentralized, the OTC participants can refrain from disclosing the prices to the public until the trade ends. That creates an opportunity to execute a trade without making others aware of the price point.
Though this secretive transaction may have its own benefit, it also induces a lack of transparency. Such an issue is not seen with the exchange trading as the rules bind all the participants. So, it provides more transparency.
(Risk warning: Your capital can be at risk)
The way securities are traded crucial in determining the stability of the marketplace. It is also needful in price decisiveness. So, such a transparency issue may cause traders to determine prices inefficiently through OTC compared to exchange trading.
Also, the brokers are the only participants to fall under the regulations of various agencies. The OTC market itself does not have to abide by any stringent rules. As a result, if you encounter any violation of terms that is illegal with the exchanges, it may not be applicable here.
Volatility factor
Volatility is another factor that can serve as a risk with OTC trades. The OTC market is volatile in nature. That always brings a chance of market manipulation. It could be done by the brokers, dealers, or the whole network. Therefore, you must enter this marketplace with risk management techniques by your side.
A stop-loss-order function shall serve as an effective measure. It will prevent additional losses by stopping the trades once it extends a certain loss limit. It is available with various reliable brokers such as Expert Option.
(Risk warning: Your capital can be at risk)
OTC benefits
As stated above, being a decentralized market without any presence of exchanges provides you with certain benefits. Those are as follows:
- Additional trading opportunities even during the weekends beyond the usual hours.
- More assets are offered due to diluted regulations and less strict guidelines. Even companies not listed on exchanges can trade freely.
- Dynamic prices come as a result of few participants present in the market.
What are the OTC assets available with Expert Option?
Many assets are available that you can trade with Expert Option over the counter. You just need to press the fixed time trades button to view them. You will see a list of around 8 assets ranging from currency pairs to commodities there. Seven assets are available as currency pairs, and one is offered as a commodity. Below is the list of all the 8 assets:
- GBPUSD
- AUDUSD
- EURUSD
- USDCAD
- USDCHF
- NZDUSD
- Gold
The traders can choose any of them and trade as Fixed Time Trades with Expert Option. Also, if you find it difficult to choose the asset, you can analyze their rate of return and then choose accordingly. You have the option to view their rate of return on the platform itself. It will suggest the type of asset suitable for a particular time. So, choosing according to the rate of return will result in a higher chance of winning.
(Risk warning: Your capital can be at risk)
Conclusion
Trading OTC over the weekend can be the opportunity many traders seek to multiply their earnings. You can trade safely over the counter with Expert Option.
It offers a choice of 8 assets and easy to use interface through which you can fulfill your trading desires. The OTC trading is open for 48 hours during the weekend. So, traders seeking more trading opportunities can reap the maximum benefit through this feature with Expert Option.
(Risk warning: Your capital can be at risk)