OTC Trading

OTC stands for Over-The-Counter Trading whereby trades are done directly between two parties without the use of a central exchange or third party. There are multiple reasons traders may opt for this instead of open market trading, including avoidance of transaction tax on buys or sells, chart protection, and minimization of price impact. However, this type of trading can present risks to those involved since the transactions do not have a central marketplace or regulatory protection. GigaSwap solves this by enabling the OTC trading while providing security for any given transaction.

Participants in traditional OTC trading must agree on the terms of the transaction through anonymous platforms such as Discord, Telegram, and so on. This way of trading is based on cross-your-fingers pseudo-trust between these two unknown parties and therefore increases the risk of fraud. To prevent this situation, GigaSwap’s decentralized application (dApp) holds the role of a decentralized guarantor that deals with trade between two parties and executes independently on the terms of an agreement specified directly between the buyer and the seller, providing both security and anonymity to both parties.