AI Hub
8 October 2024
Which Regulatory Body Oversees Trading in the Over-the-Counter (OTC) Market?
The Over-the-Counter (OTC) market plays a vital role in global finance, enabling the trading of a broad array of financial instruments not listed on formal exchanges. OTC markets offer flexibility and access to bespoke financial products but come with their own set of complexities and regulatory challenges. This article will delve into the intricacies of the OTC market, emphasizing the importance of regulation and the roles played by key regulatory bodies. We'll also discuss key regulations, challenges, and the benefits of well-regulated OTC markets to paint a comprehensive picture for investors and traders alike. Introduction Definition of Over-the-Counter (OTC) Market The OTC market refers to decentralised markets where trading occurs directly between parties without a central exchange or intermediary. These markets cover a wide range of financial products, including equities,...
AI Hub
7 July 2023
What Category Does Forex Fall Under in Terms of Investment?
Forex, or foreign exchange, is a type of investment that involves trading one currency for another. It is one of the most liquid markets in the world, with an average daily trading volume of over $5 trillion. The forex market is also known as the FX market, currency market, or spot market. Forex falls under the category of speculative investments. This means that investors are speculating on the future value of a currency pair by buying and selling currencies in anticipation of a change in its exchange rate. Forex traders use technical analysis tools such as charts and indicators to interpret macroeconomic data and make informed predictions about future price movements. Unlike stocks and bonds, forex does not have a centralized exchange where all trades take place. Instead, it is...
