What is 'Over-The-Counter (OTC)'? | Freetrade Dictionary

More terms

Dirty price

The total price payable on the purchase of a gilt. It’s calculated as the clean price plus accrued interest.

Leverage

A method of trading using borrowed money that usually involves a very high level of risk.

Packaged Retail and Insurance-based Investment Product (PRIIP)

An investment where, regardless of its legal form, the amount repayable to the retail investor is subject to fluctuations.

Professional Client

An investor that is able to meet several regulatory criteria.

Nominal amount

The face value of a gilt. It represents the amount that will be repaid to the holder at maturity and is also used to calculate the dividend or coupon payment.

Xetra

A trading venue operated by the Frankfurt Stock Exchange.

W-8BEN Form

Non-US individuals and businesses may have to file this form for the Internal Revenue Service (IRS), the US tax authority.

Junk Bond

A form of debt investment that carries higher risk because of the likelihood that the issuer will default.

Custodian bank

Learn what a custodian bank is.

Over-The-Counter (OTC)