Trading over-the-counter is referred to as OTC trading. It used to indicate trading in marketplaces where you could sell or purchase shares of companies with a shady reputation or that didn’t publish their profits.
However, OTC trading has recently grown dramatically. A new blockchain kind, for example, has developed. Furthermore, classic instruments can now be traded over-the-counter (OTC).
What you will read in this Post
The basics of OTC trading
The over-the-counter market is a decentralized system of entities like brokers, traders, liquidity providers, and market makers that open transactions on a continuous basis, including on weekends.
Because the OTC markets have fewer participants, the prices are more volatile. When compared to market price levels, they may differ. Buying and selling assets outside traditional platforms and trading hours is known as OTC trading.
OTC assets available
Customers can trade on NZD/USD EUR/USD, GBP/USD, Gold, USD/CAD, and USD/JPY AUD/USD USD/CHF through Olymp Trade. The Fixed Time Trades feature allows you to trade these assets.
The cryptocurrency market is open 24×7 and does not close for weekends or holidays. As a result, it’s great for trading in the afternoon.
Choose from a wide choice of assets available at Olymp Trade, including traditional assets like Bitcoin and Ethereum, as well as digital assets such as the Basic Altcoin Index.
These assets follow numerous asset prices at the same time, resulting in improved profitability in exchange for more volatility. Traders can choose from the following choices at Olymp Trade:
- Asia Composite Index – this index analyzes changes in the price of Asian financial instruments such as the USD/SGD, USD/JPY, and Hang Seng.
- Europe Composite Index — EUR/USD, USD/CHF, Euro Stoxx, and FTSE 100 are examples of financial assets traded in Europe.
- Commodity Composite Index – this index tracks non-regional financial instruments such as gold, Brent, and gas.
What’s the point of trading on weekends?
That’s an excellent point: why trade when you can rest? That’s for a variety of convincing factors. Let us see if some of these catch your attention.
Quiet and peace
First and foremost, the weekend is the ideal opportunity to conduct a thorough market analysis. There is usually little price movement and few distractions.
This is certainly relevant if you are one of the numerous traders who works on weekdays and are unable to commit as much time to invest as you would want. Home and family duties often get in the way, so the weekend is often the only chance for uninterrupted one-on-one time with the platform.
Time for analysis
That peaceful period we mentioned can also be ideal for practicing tactics and analyzing the market. The results of the labor can be instantaneous, such as a well-timed deal, or they can take time. Hopefully, you’re already familiar with and use Olymp Trade‘s Pending Order feature.
On the weekend, you may commit much more time as you need a statistical or analytical evaluation in order to buy an asset that’ll go active on an equity market the next day.
Finally, the weekends provide far more opportunities to profit than usual. We are talking about Happy Hours on the Olymp Trade website. You’ll notice that the profitability of OTC assets rises now and again.
- Up to 82 percent for traders with Starter status
- Up to 85% for traders with Advanced status
- Up to 92 percent for traders with Expert status
Make sure you’re following Olymp Trade on Facebook and Twitter for the most up-to-date information on forthcoming Happy Hours.
What are the alternative ways to earn money on the weekends?
By participating in The Weekend Cup, you can compete against traders from all over the world. It’s a weekly trading competition in which you compete for a portion of the prize pool as well as other prizes. Extra XP and Risk-Free Trades can be earned by completing Tournament Tasks and Community Goals.
You’ll be trading the same Crypto, Composite Indices, and OTC Assets as before, but with the possibility to profit twice as much as before! Do not pass up your opportunity to engage in the game and show off your trade skills. The Weekend Cup registration is now open!
Remember that you can trade cryptocurrencies on the Olymp Trade platform on weekends as well. Please be cautious not to trade all the time.
Trading is an activity that requires a great deal of your attention. It is advisable to take a rest every now and then. It will provide you with the essential perspective, allowing you to return to your trading session with a calm mind.
How to trade OTC assets on Olymp Trade over the weekend?
On the Olymp Trade platform, navigate to the Fixed Time tab and select OTC to check what assets are offered for over-the-counter trading. The available instruments will be listed.
Olymp Trade offers eight OTC assets. GBP-USD, AUD-USD, EUR-USD, USD-CAD, USD-CHF, NZD-USD, Gold, and USD-JPY are among them.
They are available for Fixed Time Trading activities. Every asset’s percentage of profit is shown beside it. Click the information button on the right side if you want to learn more about a specific instrument.
Normally, you can trade forex continuously from 21:00 UTC Sunday to 21:00 UTC Friday. During the weekends, OTC assets can be exchanged. The session starts as soon as the main session ends, which is at 21:00 UTC on Friday. It is open for a period of 48 hours.
Read the detailed information about a certain asset to find out the exact timeline for the time zone you’re trading from.
The benefits and drawbacks of OTC trading
Let’s have a look at the benefits and drawbacks of OTC trading.
- The most prominent OTC market is a forex, which encompasses buying as well as selling currencies via a network of various banks instead of on exchanges. This implies that forex trading is decentralized and can occur at any time of day, rather than being restricted to the open and close times of an exchange.
- OTC trading is available for stocks as well as other financial instruments, including derivatives like swaps and forward contracts.
- Companies that do not fulfill the requirements of a stock exchange might raise funds through OTC trading, which can assist in fund expansion and growth. OTC shares are typically less expensive than those listed on a centralized market. As a consequence, you may buy a large proportion of shares for a very small amount of cash.
- OTC trades provide more freedom than their more standardized and regulated exchange-based contenders. This implies you can make agreements customized to your trading objectives.
- Because OTC trading is unregulated, there is a greater danger of a counterparty defaulting on any specific arrangement. This is particularly relevant for swaps and forward contracts.
- Trading stocks over-the-counter (OTC) can be dangerous because companies are not required to provide as much information as companies listed on a stock exchange. As a result, businesses can frequently claim to be ‘up and coming,’ which is not always the truth.
Customers of the Olymp Trade platform have the unique opportunity to trade without interruption seven days a week. The main session starts late on Sunday and lasts through Friday. On the weekends, however, you can still trade OTC assets and cryptocurrencies.
For over-the-counter trading, Olymp Trade offers eight instruments. Fixed Time Trades mode is where you’ll find them. Keep your focus while trading, but don’t forget to take a break. To avoid emotional trading, take regular breaks.
Make good use of the Olymp Trade demo account. You can always return there if there is a new item or approach you want to attempt.