| S.No. |
Organized Exchange Market |
OTC (Over The Counter)Market |
| 1. |
In Organized Exchange Market, there is a regulator through which transactions are completed. |
In OTC Market, there is a no regulator to carry out transactions. |
| 2. |
There is less chance of price manipulation in Organized Exchange Market. |
There is more chance of price manipulation in OTC market because of many competing traders. |
| 3. |
There is higher level of liquidity in Organized Exchange market because they have many participants and clients. |
There is less liquidity in OTC market because fewer clients are willing to trade in OTC markets. |
| 4. |
Organized exchange markets ensure transaction security. |
OTC markets do not ensure transaction security as they are prone to fraud and dishonest traders. |
| 5. |
Organized Exchange is a standard contract. |
OTC contracts are customized contracts as there is no specified guarantors which increases the risk |
| 6. |
Organized Exchange markets are centralized markets. |
OTC markets are the decentralized markets. |
Difference between Organized Exchange Market and OTC market
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