Before you (our client and/or prospective client) apply for a trading account with the Company and begin trading on financial markets, please review carefully the Terms & Conditions.
What is the OTC Market?
OTC (Over-the-Counter), or the over-the-counter market, is a financial market where assets are traded directly between two parties without being executed through a stock exchange.
On stock exchanges, such as the NYSE, there is a centralized structure that standardizes contracts, publishes real-time prices, and guarantees the settlement of transactions through a clearing house. In the OTC market, however, each transaction is a bilateral agreement, with terms negotiated directly between the parties involved.
At FuturaBroker, trading operations are conducted through this OTC model. The broker acts as a dealer (market maker), providing buy and sell quotes for assets and executing clients' orders. Its revenue is generally generated through the spread, which is the difference between the buying and selling price of an asset.
How Does the OTC Market Work at FuturaBroker?
When opening a trade at FuturaBroker, the investor is not trading directly on a stock exchange. Instead, the transaction takes place within the broker's OTC environment.
The process works as follows:
- The investor selects the asset they wish to trade.
- FuturaBroker provides the buy and sell quotes.
- The client decides whether to open a buy or sell position.
- The trade is executed and settled according to the broker's established rules.
This model provides faster order execution and allows traders to access a wide variety of financial assets through a single platform.
Assets Available at FuturaBroker
The platform offers a wide range of assets for trading, covering multiple financial markets.
Indices
Indices represent the average performance of a group of companies within a particular market.
Examples available on the platform include:
Index FR 40 EU 50 JP 225
These instruments allow traders to speculate on the performance of major stock markets without purchasing individual shares.
Stocks
FuturaBroker offers trading based on the price movements of major global companies, including:
Apple Microsoft Tesla Meta NVIDIA
With these instruments, traders can speculate on the price movements of these companies without owning the underlying shares.
Cryptocurrencies
The platform provides access to major digital assets such as:
Bitcoin (BTC) Ethereum (ETH) Solana (SOL)
These assets allow traders to benefit from price fluctuations in the cryptocurrency market.
Forex (Foreign Exchange Market)
The Forex market is the largest financial market in the world and operates primarily through the OTC market.
Available currency pairs include:
EUR/USD USD/JPY USD/BRL
These trades involve simultaneously buying one currency while selling another, aiming to profit from exchange rate movements.
Commodities
The platform also offers commodity trading, including:
Gold
Gold is widely regarded as a safe-haven asset and is commonly traded during periods of economic uncertainty.
Volatility Indices
The platform provides access to:
Volatility 10 Volatility 25
These indices represent different levels of market volatility and are commonly used by traders seeking opportunities from price fluctuations.
Synthetic and Thematic Assets
The platform also offers:
Bear Market Bull Market Meme
These are proprietary assets offered by the broker, each with its own pricing methodology and characteristics. Before trading these instruments, it is important to understand how they are structured and priced.
Advantages of the OTC Market
The OTC market offers several advantages for traders and financial institutions, including:
Greater flexibility in contract terms; Access to assets that may not be listed on traditional exchanges; The ability to execute large transactions with minimal market impact; Access to multiple international markets through a single platform; Extended trading hours for many assets; Fast trade execution.
For institutional investors and large market participants (often referred to as "whales" in the cryptocurrency market), OTC trading also enables the execution of high-volume transactions without significantly affecting market prices.
Disadvantages of the OTC Market
Despite its advantages, the OTC market also has certain limitations.
Counterparty Risk
Since OTC transactions are generally not guaranteed by a central clearing house, traders rely on the financial stability and ability of the counterparty to fulfill its obligations.
Liquidity
Depending on the asset being traded, liquidity may be lower than in exchange-traded markets, making it more difficult to enter or exit certain positions.
Price Formation
Unlike centralized exchanges, there is no single public market price. Different brokers may offer slightly different quotes for the same asset, as pricing is determined within each broker's OTC environment.
Trade Integrity and Transparency
At FuturaBroker, trading results are not subject to manipulation. Prices and trade outcomes are generated according to the platform's trading environment and cannot be manually altered by the broker.
To promote transparency, FuturaBroker provides a public Status page, where users can verify the operational status of the platform, including system performance, maintenance updates, and service availability.
You can access the Status page at:
https://status.futurabroker.com/
This transparency helps ensure that clients have access to real-time information regarding the platform's operational status and can independently monitor any scheduled maintenance or service incidents.