Why are trades executed OTC?

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1

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?

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2

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

3

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 )

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4

Yep, thanks for this.

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

5

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

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6

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

7

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

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