OVER-THE-COUNTER (OTC)
Over-the-counter (OTC) is trading done directly between two parties, without the supervision of an exchange.
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Fragmentation refers to the existence of multiple, often competing, markets and platforms where assets are traded, resulting in a lack of centralized liquidity. In trading, fragmentation can make it challenging to access the best prices, as different exchanges may offer different bid-ask spreads for the same asset. Traders may use smart order routing systems to navigate fragmented markets, ensuring they get the most favorable execution prices across multiple platforms and exchanges.