The difference between virtual currency OTC and floor trading

1. Floor trading

also known as exchange trading, refers to the trading mode in which all the supply and demand sides are concentrated in the exchange for bidding. This kind of trading mode has the characteristics of the exchange collecting margin from the trading participants, being responsible for clearing and undertaking the responsibility of performance guarantee at the same time

all traders are concentrated in one place to trade, which increases the trading density and generally forms a market with high liquidity

futures trading and part of standardized option contract trading belong to this kind of trading mode

2. Over the counter trading refers to all kinds of trading activities outside the exchange, which is called "over the counter trading" or "over the counter trading"

this kind of organization has no fixed opening and closing time, no specific trading place, and the two sides of the transaction do not have to deal face to face, only rely on telex, telegram, telephone and other communication equipment to contact and contact each other and negotiate to reach a transaction

the OTC of foreign exchange instry mainly includes spot foreign exchange trading and spot foreign exchange margin trading

extended data

the main differences between floor trading and OTC trading are as follows:

(1) different concentration. The over-the-counter market is a decentralized and invisible market, which has no fixed and centralized trading place

reference materials

network floor trading

network floor trading

The difference between OTC market and exchange market (exchange market) mainly lies in trading procts, trading methods, access threshold and obligations:

1. Trading procts are different

the stock rights of listed companies are mainly traded in the exchange market, and other financial procts and derivatives can also be traded in the OTC market in addition to the listed shares of non listed companies

2

the exchange market adopts the order driven centralized bidding trading system, while the OTC market usually adopts the quotation driven market maker system

the companies listed on the stock exchange market are mainly large, mature or in a period of rapid growth, and the entry threshold is high; OTC market is mainly for the start-up or early growth of enterprises, and its access threshold is relatively low

4

listed companies in the stock exchange market should not only perform strict information disclosure obligations, but also accept the supervision of regulatory authorities, exchanges, intermediaries, investors and market parties, which puts forward high requirements for their standardized operation

1、 There are some reasons why futures can be traded over the counter:

because of the convenience of trading. Historically, futures trading was carried out in the trading hall through the oral bidding of traders. But now, with the development of technology, most futures trading is completed through electronic trading. When trading, investors input trading orders through the computer system of futures companies, and the matching system of the exchange carries out matching transactions. Futures traders usually buy and sell futures contracts through futures brokerage companies

1. The trading places of floor trading and over-the-counter trading are different:

(1) the trading place of floor trading is stock exchange. A stock exchange is a place with a fixed site, various service facilities (such as quotation board, TV screen, computer, telephone, telex, etc.), necessary management and service personnel, and centralized trading of stocks and other securities. The stock trading in this place is called floor trading

(2) place of OTC trading: outside the stock exchange. OTC is the symmetry of floor trading

according to the trading proceres, the financial market is divided into the exchange trading market and the over-the-counter trading market. Floor market refers to the exchange of all kinds of securities. The biggest difference between the floor market and the OTC market is that the floor market has standard contracts and is regulated

extended information:

the unique characteristics of OTC trading:

1. The variety of OTC securities. The stock exchange sets strict listing conditions for the listed securities, and only accepts the listed securities that meet the strict conditions, so the number of securities that can be traded in the stock exchange is relatively small. The over-the-counter securities are usually unlisted securities. They do not need to meet the strict listing conditions issued by the centralized market manager, so the number of them is huge

compared with the listed securities, the types of OTC securities are more abundant and diverse. It is worth noting that unlisted securities are not inferior securities. Some securities are not traded on the stock exchange because the issuers have not applied for listing

2. Over the counter transactions are mainly concted through negotiation pricing. The stock exchange price is determined according to the principle of centralized bidding, that is, the transaction price of each transaction is determined by a number of sellers and buyers through call bidding or continuous bidding according to the rules of time priority and price priority. However, over-the-counter trading is based on the "one-to-one" way to determine the price of securities, and the transaction price depends on the consensus of both parties

in some cases, the price of securities transaction is determined by repeated negotiation among all parties; In some cases, although the price of securities is quoted by one party, it can still be adjusted according to the market situation and the acceptance of the other party. There is still an opportunity to negotiate pricing

3. Special transaction management structure is adopted for OTC. In foreign countries, OTC is an important way of securities trading, and the OTC market is also huge. In order to ensure the healthy development of over-the-counter trading, securities regulators still implement indirect supervision in a unique way

on the one hand, by defining the specific scope of OTC, we can avoid the phenomenon of "OTC, actually floor trading"; On the other hand, we should support all kinds of self regulatory organizations to supervise OTC transactions, and encourage securities companies and various securities associations to supervise OTC transactions. Although this kind of management is relatively loose, it is by no means to give up the supervision of the OTC market, and the OTC market is by no means disorderly development

The biggest difference between the exchange market and the over-the-counter market is that the exchange market has standard contracts and is regulated, while the over-the-counter transaction is often only a private agreement between the two parties. It is precisely because of the opacity that the over-the-counter market has become the target of the current financial crisis. But many people in the financial instry think that OTC still has its necessity

1、 Differences

1. Trading partners:

the funds that can be purchased in the market are lof funds, ETF funds and closed-end funds (as shown in Figure 3); The OTC can buy all open-end funds, including lof funds and some ETF funds. Most OTC funds can make fixed investment and conversion

2. Transaction rate:

the highest one-way transaction rate of floor buying or selling shall not exceed 0.3%; The off-site subscription rate is generally 0.6% - 1.5%, and the redemption rate is generally 0.5%

3. Time to account:

the funds can be sold in T + 1 working day after purchase, and the funds will arrive in T + 1 working day; The OTC fund can be redeemed within t + 2 working days after subscription, and the fund will arrive at the account within t + 1 working day

1. The off-site subscription fee is 1.5%, and the redemption fee is 0.5%. There is no stamp ty for on-site trading, but only Commission. The one-way maximum is 0.3%, and the online trading is generally 0.2%. All the above are based on the transaction amount, because the fund is a low yield proct, and your handling charge is relatively low. The fund income of 100 yuan is only 10 cents a day

extended data

the floor is the stock market, which is also known as the secondary market. Outside the stock exchange market, the OTC market refers to the agency sales of banks and securities companies, the direct sales of fund companies, and the familiar open-end fund sales channels

for closed-end funds, ETF funds can only be purchased in the market (for large investors, ETF can be purchased in the "primary" market), that is, they can only be purchased in the stock market. Other open-end funds can be purchased outside the field, which is a well-known way. Lof funds can be purchased inside the field

OTC market is also known as OTC market or over-the-counter market, which refers to the market where securities are traded outside the stock exchange. It is mainly composed of the counter trading market, the third market and the fourth market

from the perspective of trading organization, capital market can be divided into exchange market and OTC market. OTC market is relative to the exchange market, which is a market for securities trading outside the stock exchange. The traditional physical concepts of the exchange market and the OTC market are as follows: the trading in the exchange market is concentrated in the trading hall; The over-the-counter market, also known as the "counter market" or "shop market", is a market scattered over the counters of various securities firms. There is no centralized trading place and unified trading system. However, with the development of information technology, the way of securities trading has graally evolved into the collection of orders through the network system, and then processed by the electronic trading system. The physical boundary between the floor market and the OTC market is graally blurred