What is 'OTC option' in SAP FIN-FSCM-TRM-TM - Transaction Manager?

OTC option - Overview

• Component: FIN-FSCM-TRM-TM

• Component Name: Transaction Manager

• Description: An option based on individual contractual agreements between business partners OTC: over the counter.

OTC option - Details

• 
  Key Concepts: 
  OTC (Over-the-Counter) option is a type of financial derivative that is traded directly between two parties, without going through an exchange or other intermediary. It is a contract between two parties that gives the buyer the right, but not the obligation, to buy or sell a financial instrument at a predetermined price on or before a specified date. The OTC option is part of the Transaction Manager component of SAP's Financial Supply Chain Management (FSCM) module. 
  
  How to use it: 
  The OTC option can be used to manage risk and hedge against potential losses. It can also be used to speculate on the future price of a financial instrument. The OTC option can be used to create customized contracts that are tailored to the specific needs of the buyer and seller. 
  
  Tips & Tricks: 
  When using an OTC option, it is important to understand the terms and conditions of the contract. It is also important to understand the risks associated with the contract, as well as any fees or commissions that may be charged. 
  
  Related Information: 
  For more information about OTC options and how they can be used in SAP's FSCM module, please refer to SAP's official documentation on Transaction Manager.