Several well-known over-the-counter (OTC) markets exist, offering avenues for trading various financial instruments directly between parties without the need for a centralized exchange. One significant example is the OTC market for derivatives, including interest rate swaps, credit default swaps, and commodity derivatives. These markets allow investors and institutions to customize contracts to suit their specific risk management needs, providing flexibility in hedging against market uncertainties.

Another prominent OTC market is the foreign exchange (forex) market, where currencies are bought and sold by participants worldwide. Unlike stock exchanges, the forex market operates 24 hours a day, allowing for continuous trading across different time zones. Market participants in the forex market include banks, financial institutions, corporations, and individual traders, engaging in speculation and hedging activities based on exchange rate fluctuations.

Furthermore, the OTC market for bonds is substantial, encompassing government bonds, corporate bonds, and municipal bonds. Bonds traded over-the-counter offer issuers and investors flexibility in terms of maturity, interest rates, and credit quality. These markets facilitate direct transactions between buyers and sellers, often conducted through broker-dealers or electronic trading platforms.

Additionally, the market for over-the-counter stocks, such as those traded on the OTC Bulletin Board (OTCBB) and the Pink Sheets, provides a platform for trading shares of companies not listed on major exchanges. These stocks may be smaller, less liquid, and subject to lower regulatory requirements compared to exchange-listed securities.

Overall, these examples highlight the diverse range of assets and instruments traded in OTC markets, serving as essential components of the global financial system.