What is over the counter in SAP IS-B - SAP for Banking?

SAP Term: over the counter

• Component: IS-B

• Component Name: SAP for Banking

• Description: Bank Components Describes the trading of securities outside a stock exchange.

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• Key Concepts: 
  Over the counter (OTC) is a term used in the IS-B SAP for Banking component to refer to a type of transaction that is conducted directly between two parties, without the involvement of a third-party intermediary. This type of transaction is typically used for large-scale transactions, such as those involving foreign currencies or commodities. 
  
  How to use it: 
  In order to use OTC transactions, both parties must agree on the terms of the transaction and sign a contract. The contract should include details such as the amount of money being exchanged, the date and time of the transaction, and any other relevant information. Once the contract is signed, the transaction can be completed without any further involvement from a third-party intermediary. 
  
  Tips & Tricks: 
  When using OTC transactions, it is important to ensure that all parties involved are aware of the terms of the transaction and that they are comfortable with them. Additionally, it is important to keep records of all OTC transactions in order to ensure that all parties are held accountable for their actions. 
  
  Related Information: 
  OTC transactions are not limited to banking; they can also be used in other industries such as stock trading and commodities trading. Additionally, OTC transactions can be used in conjunction with other types of transactions, such as forward contracts or futures contracts.