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over the counter or OTC trading is also called off-exchange trading because as the second name suggests a trade takes place between two parties directly rather than through a formal exchange such as the New York Stock Exchange how does it work simply put trades are facilitated by so-called broker dealers or if you will market makers who communicate and negotiate with one another through inter dealer quotation services managed by entities such as OTC Markets Group with its OTC link or FINRA what is OTC bulletin board while not as regulated as letamp;#39;s say the New York Stock Exchange various policies and eligibility requirements do exist OTC trading doesnamp;#39;t always have the best reputation for reasons such as 1 less liquidity with you perhaps being left holding the proverbial bag upon realizing that there are no buyers for what youamp;#39;re selling or that you have to lower your price expectations a lot to find buyers to less transparency with the price not even having to b