Why are trades executed OTC?

Does anyone know why trades are executed OTC instead of through the proper exchanges?

Does T212 execute in a way that assets are traded within users?

There are several trading venues for the same stock. I would assume the system picks whichever has the best price at that particular moment.

OTC stands for “over the counter,” which means they’re traded directly through the network of trading212 from other users . An OTC trade doesn’t take place on one of the exchanges, such as the New York Stock Exchange or Nasdaq. Practically if it there is another person who is selling/buying the stock for the price that you want the transaction is run between you two ( sometimes is much faster and easier )

Yep, thanks for this.

Know what OTC means but this then leads to probably a more sensitive question, does T212 sell order flow data?

@fauxylar Nope, we don’t take payment for order flow, I don’t think that’s even legal here.


Cool thanks! :slight_smile: Only asked because apparently RH does

@fauxylar Common practice in the :us:, not so much here.