A decentralized market where trading is done directly between parties (via electronic networks or phone), rather than on a centralized exchange. The forex market is an OTC market – currencies are traded 24/5 through a network of banks and brokers, not a single exchange. In OTC trading, each broker may have slightly different prices or liquidity, since trades aren’t all funneled through one system. “OTC…refers to a trade that is not made on a formal exchange,” but instead between two parties off-exchange. For traders and EAs, this means that your broker’s price feed is unique to that broker (though top-tier brokers’ prices are usually very close). It also means there’s no centralized order book; liquidity comes from the broker’s LPs. One implication: an EA’s performance can vary from broker to broker because the OTC nature of forex can lead to differences in spreads, slippage, or price spikes. Always test your robot on the live feed of the broker you plan to use.

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