Also known as exchange trading, it refers to the trading mode in which both the supply and demand sides concentrate on the exchange for bidding trading. The characteristic of this trading method is that the exchange collects the deposit from the trading participants, and is also responsible for liquidation and performance guarantee.

All traders are concentrated in one place, which increases the density of transactions and generally forms a highly liquid market.

Futures trading and some standardized option contract trading all belong to this trading mode.

2. OTC trading

Over-the-counter trading refers to various trading activities outside the exchange, which are called "over-the-counter trading" or "over-the-counter trading".

This kind of organization has no fixed opening and closing time, and there is no specific trading places. The two parties to the transaction do not have to conduct transactions face to face, but only rely on communication equipment such as telex, telegraph and telephone to contact each other and reach a transaction through consultation.

OTC transactions in the foreign exchange industry mainly include spot foreign exchange transactions and spot foreign exchange margin transactions.

Extended data

The main differences between on-site trading and off-site trading are:

(1) concentration is different. OTC market is a scattered intangible market, and there is no fixed and centralized trading place.

(2) Organizational differences. The OTC market is organized by the market maker system and the OTC market by the brokerage system.

(3) Different openness. Over-the-counter market is a market where securities are traded through bargaining. Its management is looser than that of the stock exchange, and its opening requirements are not high.

reference data

Baidu encyclopedia-floor trading

Baidu encyclopedia-OTC trading