Over-the-counter derivatives are customized and less transparent relative
to exchange traded derivatives. There is a tendency to think that OTC
market is less liquid relative to the exchange market, but this is not
necessarily true
Derivatives MCQ - Derivatives Section 1
Market makers buy at one price (the bid), sell at a higher price (the ask),
and hedge whatever risk they otherwise assume. They do not charge a
commission.
Customization of contract terms is a characteristic of over-the-counter
derivatives
