Over-the-Counter (OTC)
A private, negotiated trade between two parties that settles off the public order book.
When a fund wants to buy $50 million of Bitcoin, putting that on an exchange order book would move the price against them. OTC desks solve this. A broker matches a buyer and seller directly, quotes a single price for the whole block, and settles privately.
The trade never hits the public market until it's done. Big miners, funds, and corporate treasuries use OTC to avoid slippage and to avoid signaling their hand.
Related terms
A holder large enough that buying or selling their position can move a coin's price on its own.
SlippageThe difference between the price you expected on a trade and the price it actually executed at.
LiquidityHow easily an asset can be bought or sold near its current price without moving that price much.
Price DiscoveryThe market process by which buyers and sellers continuously settle on an asset's fair price.