over the counter derivative

Definition

A type of financial derivative that has its transaction directly negotiated between two parties rather than through an exchange. Some financial derivatives, such as a swap, a forward rate agreement or an exotic option, are usually done over the counter.

Use this term in a sentence

The over the counter derivative w better for us because it was directly between us and we didn't have to do anything else.

​ Was this Helpful? YES  NO 8 people found this helpful.

You may want to try and shop around to get the best price on an over the counter derivative that you think will hit it big.

​ Was this Helpful? YES  NO 5 people found this helpful.

For the betterment of the company, the CEO and his company counterparts thought it was in the best interest of everyone involved if there used and over the counter derivative instead of an exchange.

​ Was this Helpful? YES  NO 11 people found this helpful.

Show more usage examples...

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
over improvement exchange-traded derivative