OTC Products

Over-the-Counter (OTC) investment products are traded between two parties (bilateral negotiation) without going through an exchange or any other intermediaries. OTC products are usually traded via dealer network including Funds, Structured Products, Accumulator, Decumulator and OTC Options.

  • Funds:
    An investment fund is a supply of capital belonging to numerous investors. The capital is used to collectively invest in a wide range of assets while investors retain ownership and control of their own shares. An investment fund provides a broader selection of investment opportunities and the diversifying asset investment can help spread the risk and smooth returns over time.
  • Structured Products:
    Structured products are investment instruments designed to facilitate highly customized risk-return objectives. They are a combination of basic traditional assets (equities, bonds, currencies or funds) into one securitized instrument.
  • Accumulator:
    Accumulator is a financial derivative product sold by an issuer (seller) to investors (the buyer) that requires the buyers to buy shares of some underlying security at a predetermined strike price, settled periodically.
  • Decumulator:
    The reverse of an accumulator. More specifically, it is a structured product that involves investors taking on the obligation to sell a certain number of shares or currency on a regular basis at a fixed price.
  • OTC Options:
    OTC options are exotic options traded in the over-the-counter market rather than on a formal exchange. OTC options are transacted directly between buyer and seller with no secondary market and no standardization of strike prices and expiration dates.

Benefits of OTC Products

Lower Entry Costs

OTC markets are more cost-efficient than traditional stock exchanges and offer the chance for investors to buy large quantities of a particular security at an early stage of a company's growth.

Accessibility

Investors may access to investment products that are not widely offered by formal exchanges and opt for what suit their investment goals from a wide range of markets, topics and investment categories.

Customizability

OTC products can be customized to fit many different risk profiles or market views. These customizable instruments can offer specifications not available through exchange-traded contracts (e.g. non-standard quantities, strike prices, expiration dates, etc.) and can be tailored to meet each investor's individual needs.

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Generic risk warning and disclaimer

Investment involves risk. As a general rule, you should only trade in financial products that you are familiar with and understand the risk associated with them. The risk warning described in each financial product below is not exhaustive, you should carefully consider your investment experience, financial situation, investment objective, risk tolerance level and consult your independent financial adviser as to the suitability of your situation prior making any investment. It does not constitute any offer or solicitation of offer to subscribe, transact or redeem any investment product.