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Dunn To PerfectionFoundation

Financial Markets · Module 2: How Markets Work · Lesson 1

Exchanges vs OTC

Beginner 6 minLesson 6 of 7

Learning objectives

  • Explain exchanges vs otc in plain language
  • Understand why it matters to markets
  • Recognise a common misconception

The concept

Exchanges are centralised venues with public prices; markets trade directly between parties.

Why it matters

Venue affects transparency and .

How markets interpret it

is mostly OTC; are exchange-traded.

Key takeaways

  • Exchange = centralised; OTC = bilateral.

Knowledge check

Spot gold trades mostly…

Key terms · hover or tap for a definition

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