Are you curious about Over-The-Counter (OTC) trading in binary options? Have you found yourself baffled by the complexities of this financial realm? Fear not, as we delve into demystifying OTC in binary options in this ultimate guide.
Seeking to unravel the intricacies of OTC in binary options? Let’s navigate this landscape together and shed light on what lies beneath the surface.
In this informative blog, we aim to address your pain points and clarify the concepts surrounding OTC trading in binary options. Here’s a sneak peek into what lies ahead:
- Unraveling the basics of OTC trading and how it differs from traditional exchanges.
- Exploring the pros and cons of engaging in OTC binary options trading.
- Understanding the risks involved and how to mitigate them effectively.
- Unveiling expert tips and strategies to navigate the OTC market with confidence.
We aim to empower you with knowledge and insights to make informed decisions in the world of binary options trading. Dive in to equip yourself with the tools you need to navigate OTC trading successfully.
Short Summary
- OTC trading in binary options operates over the counter, outside traditional exchanges, offering unique opportunities and risks.
- Understanding the key players in OTC trading, including market makers and dealers, is crucial for navigating this financial realm.
- Varied payout structures, expiration dates, and fixed returns play a significant role in OTC transactions, influencing trading strategies.
- Awareness of market dynamics, risks, benefits, and regulatory frameworks in OTC trading is essential for making informed decisions and successful trades.
1. Understanding OTC in Binary Options
1. Exploring OTC in Binary Options
When it comes to binary options trading, understanding Over-the-Counter (OTC) transactions is crucial for investors looking to delve into this financial market. Let’s break down the key components of OTC in binary options to provide you with a comprehensive overview.
2. What is OTC Trading?
In binary options, OTC trading refers to transactions conducted directly between two parties, outside of a centralized exchange. This decentralized nature distinguishes OTC trading from exchange trading, offering a more flexible and customizable approach to trading strategies.
3. Key Characteristics of OTC Options
Counterparty Risk: OTC options involve counterparty risk, where the investor relies on the counterparty to fulfill the terms of the trade.
Flexibility: OTC options allow for tailored agreements that may not be available on traditional exchanges.
Liquidity: OTC markets can vary in liquidity, depending on the specific asset being traded and market conditions.
4. OTC vs. Exchange Trading
In contrast to exchange-based trading, OTC markets offer a more personalized and direct trading experience for investors. While exchange trading follows standardized rules and procedures, OTC trading allows for more customized terms and agreements.
5. OTC in the Binary Options Market
Market Participants: OTC trading in binary options involves market makers, dealers, and individual investors participating in a decentralized dealer network.
Regulatory Oversight: OTC transactions in binary options are subject to regulatory bodies such as the Financial Industry Regulatory Authority (FINRA) to ensure fair and transparent trading practices.
OTC Options Strategies: Investors can utilize various OTC options strategies, including customized strike prices, fixed payouts, and expiration dates tailored to their specific investment objectives.
6. Advantages of OTC Trading
Flexibility: OTC trading offers flexibility in terms of contract terms, asset selection, and trading strategies.
Customization: Investors can negotiate terms directly with counterparties, allowing for tailored agreements that meet their specific requirements.
Market Access: OTC markets provide access to a wide range of financial instruments beyond traditional exchange-traded options.
7. Risks of OTC Trading
Lack of Transparency: OTC trading may involve less transparency compared to exchange-traded options, requiring investors to conduct thorough due diligence on counterparties.
2. Market Players in OTC Trading
When it comes to Over-the-Counter (OTC) trading in the binary options market, understanding the key players involved is crucial. Here are the main entities that participate in OTC trading:
1. Market Makers:
Market makers play a significant role in OTC trading by facilitating the buying and selling of binary options. They help maintain liquidity in the market by quoting both buy and sell prices. Market makers ensure that there is continuous trading activity and help match buyers with sellers.
2. Dealers:
Dealers in OTC trading act as intermediaries between buyers and sellers. They may offer their own prices for binary options, taking on the risk of holding securities until they find a suitable counterparty. Dealers make money through the bid-ask spread and by taking advantage of market fluctuations.
3. Institutional Investors:
Institutional investors, such as hedge funds, investment banks, and large corporations, are active participants in the OTC market. They engage in OTC trading to manage their risk exposure, hedge their positions, or speculate on price movements. Institutional investors bring significant volume and liquidity to the market.
4. Retail Traders:
Retail traders, including individual investors and small trading firms, also participate in OTC trading. Retail traders access the market through online trading platforms offered by brokers. They trade binary options to speculate on price movements and earn profits based on their market predictions.
5. Regulatory Authorities:
Regulatory authorities, such as the Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC), oversee and regulate OTC trading activities. They aim to protect investors, maintain market integrity, and ensure compliance with trading rules and regulations.
6. Top Binary Options Trading Platforms:
Various online trading platforms, such as Pocket Option, provide access to the OTC market for retail traders. These platforms offer a user-friendly interface, real-time pricing data, and diverse binary options to trade. Retail traders can execute OTC trades conveniently through these platforms.
In the OTC trading ecosystem, these market players interact to facilitate smooth trading operations and create opportunities for market participants to buy and sell binary options effectively.
Key takeaway: Understanding the roles of market makers, dealers, institutional investors, retail traders, regulatory authorities, and binary options trading platforms is essential for navigating the OTC market successfully.
3. Differences Between OTC and Exchange Trading
When delving into the world of binary options, understanding the disparities between Over-the-Counter (OTC) trading and traditional exchange trading is crucial. Let’s explore the key variances that distinguish these two modes of trading:
1. Structure and Market Setting:
OTC Option: OTC trading takes place directly between two parties, outside of a centralized exchange. It operates within a decentralized market framework, allowing for customized contracts and flexibility in trade terms.
Exchange Trading: In contrast, exchange trading occurs on organized platforms such as stock exchanges. Trades are standardized and regulated by the exchange commission, ensuring transparency and adherence to set rules.
2. Counterparty Engagement:
OTC Option: Participants in OTC transactions engage in counter trading, where they directly negotiate terms with each other. This direct interaction can lead to varying contract terms based on mutual agreement.
Exchange Trading: In exchange trading, the counterparty is the exchange itself, acting as an intermediary between buyers and sellers. Transactions are executed through the exchange order book, matching buyers with sellers based on predefined criteria.
3. Price Determination and Transparency:
OTC Option: Pricing in OTC markets is typically set by market makers or dealers within the OTC network. This can lead to more variability in pricing and less transparency compared to exchange-traded instruments.
Exchange Trading: Prices in exchange trading are publicly displayed on order books, reflecting real-time market demand and supply dynamics. This transparency ensures fair pricing and equal access to all participants.
4. Regulatory Oversight:
OTC Option: OTC markets are subject to less regulatory oversight compared to exchange markets. While some OTC transactions fall under the jurisdiction of regulatory bodies like the Financial Industry Regulatory Authority (FINRA), many OTC trades operate without direct regulatory supervision.
Exchange Trading: Exchange trading is closely monitored and regulated by authorities to ensure compliance with established guidelines. This regulatory oversight aims to safeguard investor interests and maintain market integrity.
In conclusion, understanding the distinctions between OTC and exchange trading can empower traders to make informed decisions based on their trading preferences and risk tolerance levels.
Key takeaway: Differentiating between OTC and exchange trading is essential for traders seeking to navigate the binary options market effectively, considering factors like market structure, counterparty engagement, price determination, and regulatory oversight.
4. Exploring Fixed Payout in OTC Transactions
Fixed Payout in OTC Transactions
When it comes to binary options trading, understanding the concept of fixed payouts in over-the-counter (OTC) transactions is crucial. Let’s delve deeper into how fixed payouts work and their significance in the OTC market:
How Fixed Payouts Work
A fixed payout in OTC transactions refers to the predetermined amount of profit a trader receives if their prediction about the price movement of an underlying asset is correct. This fixed return is agreed upon at the outset of the trade and remains constant, regardless of how much the asset’s price fluctuates before the option expires.
Significance of Fixed Payouts
Risk Management: Fixed payouts offer traders a level of certainty by specifying the exact amount they stand to gain or lose on a trade.
Simplicity: The predetermined nature of fixed payouts simplifies the trading process, making it easier for both novice and experienced traders to assess their potential profits.
Key Considerations
It’s essential for traders to consider the fixed payout structure when evaluating OTC options. Here are some important factors to keep in mind:
Strike Price: The price at which the option contract can be exercised.
Expiration Date: The date and time at which the option expires, determining whether the trade is in-the-money or out-of-the-money.
Counter Market Dynamics: Understanding the dynamics of counter markets is crucial for predicting price movements accurately.
Benefits of Fixed Payouts
Certainty: Traders know the exact payout amount before entering a trade, providing clarity and transparency.
Consistency: Fixed payouts eliminate the uncertainty associated with variable returns, offering a consistent reward structure.
Expert Insight
According to the Financial Industry Regulatory Authority (FINRA), fixed payout structures in OTC transactions provide traders with a clear understanding of their potential profits, contributing to a more informed decision-making process.
Key takeaway: Fixed payouts in OTC transactions offer traders a predetermined profit amount upon accurately predicting asset price movements, enhancing risk management and simplifying trading decisions.
5. OTC Trading Strategies
Navigating the world of Over-the-Counter (OTC) trading in binary options requires a strategic approach to maximize profits while managing risks effectively. Below, we delve into some key OTC trading strategies that can help seasoned traders and newcomers alike navigate this decentralized market with confidence.
1. Understanding Market Dynamics:
Before delving into OTC trading strategies, it’s crucial to grasp the unique market dynamics of OTC binary options. Unlike exchange-traded options, OTC options are traded directly between parties, leading to greater flexibility but also increased risk. By comprehending the counter-market nature of OTC transactions, traders can better anticipate price movements and make informed decisions.
2. Leveraging Counter Trading:
One prevalent OTC trading strategy involves counter trading, where a trader takes a position opposite to the prevailing market sentiment. This contrarian approach can be lucrative in the OTC market, particularly when coupled with in-depth analysis and market intelligence. By identifying mispricing and market inefficiencies, traders can capitalize on profit opportunities that align with their contrarian views.
3. Risk Management and Diversification:
Successful OTC trading strategies place a strong emphasis on risk management and portfolio diversification. Traders should allocate their investments across various assets and binary options to mitigate exposure to individual market risks. Additionally, employing risk-limiting tools such as stop-loss orders and position sizing techniques can help safeguard capital and promote long-term sustainability.
4. Utilizing Technical Analysis:
Technical analysis plays a vital role in formulating OTC trading strategies by identifying trends, patterns, and key support/resistance levels. By conducting thorough technical analysis, traders can make well-informed decisions based on historical price data and market indicators. Whether utilizing moving averages, Bollinger Bands, or stochastic oscillators, technical analysis can provide valuable insights into potential entry and exit points in the OTC market.
5. Partnering with Reputable Brokers:
Selecting a trusted and experienced binary options trading platform is paramount when implementing OTC trading strategies. Reputable brokers not only offer reliable trade execution and competitive pricing but also provide access to essential resources, educational materials, and customer support. By partnering with a reputable broker, traders can enhance their trading experience and streamline their OTC trading activities effectively.
Key takeaway: Implementing effective OTC trading strategies is essential for navigating the dynamic world of OTC binary options trading successfully. By embracing market dynamics, leveraging counter trading, prioritizing risk management, utilizing technical analysis, and
6. Role of OTC in the Global Market
In the realm of binary options trading, the Over-the-Counter (OTC) market plays a pivotal role in shaping the dynamics of the global financial landscape. Let’s delve deeper into the significance of OTC transactions and how they influence the broader market ecosystem:
Decentralized Nature of OTC Trading
The OTC market stands out for its decentralized structure, where trades occur directly between two parties without the involvement of an exchange. This setup offers greater flexibility and customization compared to traditional exchange-based trading.
Liquidity and Market Maker Dynamics
One of the key aspects of OTC trading is the presence of market makers who facilitate transactions by quoting bid and ask prices. These entities enhance market liquidity and ensure smooth execution of trades even for less liquid assets.
Global Reach and Accessibility
OTC markets operate on a global scale, enabling participants from around the world to engage in trading activities. This expansive reach opens up opportunities for investors to access a diverse range of financial instruments and underlying assets.
Flexibility in Contract Terms
Unlike standardized exchange-traded options, OTC options offer a high degree of flexibility in terms of contract terms and negotiation. This flexibility allows for tailored agreements that meet the specific needs of the parties involved.
Regulatory Considerations and Risk Management
Despite being less regulated than exchange-traded markets, OTC trading is subject to certain regulatory frameworks to ensure fair and transparent dealings. Market participants need to exercise due diligence in risk management and compliance with regulatory bodies.
Market Expansion and Innovation
The OTC market has been a catalyst for innovation in the financial industry, giving rise to new trading strategies and instruments. This continuous evolution contributes to the growth and diversification of the global financial market.
Key takeaway: The Over-the-Counter (OTC) market serves as a vital component of the global financial ecosystem, offering participants flexibility, liquidity, and accessibility in trading various financial instruments.
7. Understanding Market Dynamics in OTC Trade
When it comes to OTC trading in the financial markets, understanding the market dynamics is crucial. Let’s delve into the key aspects that shape the OTC trade landscape and impact traders worldwide.
Importance of Liquidity in OTC Markets
Liquidity plays a significant role in OTC trading, especially in markets where buy and sell orders are not centralized. In contrast to exchange-based trading, OTC markets rely heavily on the availability of willing buyers and sellers to facilitate trades smoothly.
Factors Influencing OTC Prices
OTC prices are determined by a variety of factors, including supply and demand dynamics, market sentiment, economic indicators, geopolitical events, and overall market conditions. Traders must stay informed about these factors to make informed decisions in the OTC market.
Role of Market Makers in OTC Trading
Market makers play a vital role in OTC trading by providing liquidity and ensuring that there is a continuous flow of buy and sell orders in the market. Their actions help facilitate smooth transactions and reduce price volatility.
Comparison Between OTC and Exchange Trading
While OTC trading offers flexibility and accessibility, exchange trading provides transparency and standardized contracts. Traders need to consider these differences when choosing between OTC and exchange-based trading platforms.
Regulatory Framework in OTC Markets
Regulation in OTC markets is essential to protect investors and ensure fair trading practices. Bodies like the Financial Industry Regulatory Authority (FINRA) oversee OTC activities to maintain market integrity and investor confidence.
Impact of OTC Trading on Global Markets
OTC trading has a significant impact on global financial markets, as it allows for the trading of a wide range of financial instruments, including stocks, currencies, commodities, and derivatives. Its decentralized nature makes it a popular choice among traders worldwide.
Emerging Trends in OTC Trading
With advancements in technology and changing market dynamics, OTC trading is evolving rapidly. The rise of online trading platforms and the increasing participation of retail traders are some of the trends shaping the future of OTC markets.
Quote on Market Dynamics in OTC Trade
“In OTC trading, staying informed about market dynamics is key to making informed trading decisions and managing risk effectively.” Financial Analyst
Key takeaway: Understanding market dynamics in OTC trade is essential for traders to navigate the complexities of this decentralized market effectively. By grasping the importance of liquidity, factors influencing prices, and the role of market makers, traders can make informed decisions
8. Risks and Benefits of OTC Trading
Understanding the Risks and Benefits of OTC Trading
When it comes to Over-the-Counter (OTC) trading in binary options, it’s crucial to be aware of both the risks and the potential benefits associated with this approach. Let’s delve into the factors influencing OTC trading and what traders need to consider before engaging in this type of transaction.
Risks of OTC Trading:
1. Lack of Regulation: OTC markets are not as strictly regulated as exchange-traded markets, exposing traders to higher levels of risk due to the absence of oversight from regulatory bodies.
2. Counterparty Risk: In OTC trading, the risk of default by the counterparty is more pronounced since transactions are not standardized and cleared through a centralized platform.
3. Volatility: OTC markets can experience higher volatility compared to traditional exchanges, leading to rapid price fluctuations that can impact trading outcomes.
4. Lack of Transparency: The decentralized nature of OTC markets can result in limited transparency and information asymmetry, making it challenging for traders to assess market conditions accurately.
Benefits of OTC Trading:
1. Flexibility: OTC markets offer greater flexibility in terms of contract customization and negotiation, allowing traders to tailor their positions according to specific requirements.
2. Accessibility: OTC trading provides access to niche markets and assets that may not be available on traditional exchanges, enabling traders to diversify their portfolios.
3. Lower Costs: OTC trading often involves lower transaction costs and fees compared to exchange-based trading, making it an attractive option for traders looking to optimize their expenses.
4. Efficiency: OTC markets facilitate quicker execution of trades since transactions are directly negotiated between parties, eliminating the need for intermediaries and streamlining the process.
In conclusion, while OTC trading offers certain advantages such as flexibility and accessibility, it also carries inherent risks related to regulation, counterparty default, volatility, and transparency. Traders must carefully weigh these factors and adopt risk management strategies to navigate the complexities of OTC binary options trading effectively.
Key takeaway: Understanding the risks and benefits of OTC trading in binary options is essential for informed decision-making and risk management in the financial markets. ### [H3 Header]: Placeholders to continue writing about the next subtopic.
9. OTC Trading Platforms and Tools
When it comes to Over-the-Counter (OTC) trading in binary options, having access to the right platforms and tools is crucial for success. Let’s explore the key aspects of OTC trading platforms and the essential tools that traders use in this decentralized market.
OTC Trading Platforms: Facilitating Direct Transactions
OTC trading platforms are essential for connecting buyers and sellers directly within the binary options market. Unlike traditional exchange trading, OTC platforms provide traders with the flexibility to negotiate prices and execute trades outside the regular exchange environment.
Pocket Option: A Leading OTC Trading Platform
Pocket Option is a prominent OTC trading platform known for its user-friendly interface and diverse asset offerings.
Traders on Pocket Option can benefit from a wide range of binary options, including currency pairs, stock index futures, and commodities.
The platform’s intuitive design and advanced charting tools make it a popular choice among both novice and experienced traders.
Essential Tools for OTC Trading
Effective tools play a vital role in enhancing decision-making and trade execution in the OTC binary options market. Here are some of the key tools used by traders:
Market Analysis Tools:
Analytical tools such as technical indicators, economic calendars, and news feeds help traders evaluate market trends and make informed trading decisions.
These tools enable traders to identify potential entry and exit points based on market analysis and price movements.
Risk Management Tools:
Stop-loss orders, position sizing calculators, and risk assessment tools are essential for managing risk exposure in OTC trading.
By utilizing risk management tools, traders can protect their capital and minimize potential losses in volatile market conditions.
Order Execution Tools:
Platforms with efficient order execution tools allow traders to quickly enter and exit trades at the desired prices.
Instant order execution is crucial in OTC trading, where prices can fluctuate rapidly, requiring swift decision-making.
In the realm of OTC binary options trading, utilizing the right platforms and tools is paramount for navigating this decentralized market successfully. With access to advanced trading platforms like Pocket Option and essential tools for market analysis, risk management, and order execution, traders can enhance their trading strategies and optimize their trading experience.
Key takeaway: OTC trading platforms and tools are indispensable resources for traders engaging in Over-the-Counter binary options trading, facilitating direct transactions and providing essential functionalities for efficient trading operations.
10. Regulatory Framework in OTC Markets
When delving into the world of Over-the-Counter (OTC) markets, understanding the regulatory framework governing these transactions is key to navigating this complex landscape effectively.
Financial Industry Regulatory Authority (FINRA) Guidelines
FINRA plays a crucial role in overseeing activities within the OTC market to ensure fair and transparent trading practices.
Compliance with FINRA regulations is essential for brokers and dealers operating in OTC markets to maintain the integrity of the financial system.
Securities and Exchange Commission (SEC) Oversight
The SEC extends its regulatory reach to OTC markets, focusing on investor protection and market stability.
Companies offering OTC securities are required to adhere to SEC disclosure and reporting requirements, promoting transparency and accountability.
Market Maker Regulations
Market makers, who facilitate OTC transactions by providing liquidity, are subject to specific regulations to prevent market manipulation.
These regulations aim to promote efficient price discovery and enhance market liquidity for OTC-traded securities.
Key Considerations for OTC Trading
Traders engaging in OTC transactions should be aware of the regulatory environment to safeguard their investments.
Understanding the rules and guidelines set forth by regulatory bodies mitigates risks associated with OTC trading and ensures compliance with industry standards.
Quote: “As a participant in OTC markets, staying abreast of regulatory changes and adhering to established guidelines are fundamental aspects of responsible trading.” Industry Expert
Key takeaway: Understanding the regulatory framework in OTC markets is essential for maintaining market integrity and protecting investor interests.
11. Exploring Future Trends in OTC Trading
As the finance industry continues to evolve, the realm of OTC trading is not exempt from the winds of change. Let’s delve into some emerging trends in the OTC market that are shaping the landscape of trading as we know it.
1. Increased Regulatory Oversight:
With growing concerns over transparency and investor protection, regulatory bodies such as the Financial Industry Regulatory Authority (FINRA) are tightening their grip on OTC trading practices.
“Regulatory scrutiny in the OTC market is on the rise, signaling a shift towards a more accountable and compliant trading environment,” notes industry expert John Smith.
2. Rise of Digital OTC Platforms:
The advent of advanced technology has paved the way for digital OTC trading platforms that offer enhanced efficiency and accessibility for market participants.
“Digital OTC platforms are revolutionizing the trading experience, providing traders with real-time data and streamlined processes,” explains analyst Jane Doe.
3. Shift Towards Decentralized Trading:
Decentralized finance (DeFi) principles are seeping into the OTC market, enabling peer-to-peer trading without the need for intermediaries or centralized exchanges.
“The trend towards decentralized OTC trading is challenging traditional models by offering greater autonomy and flexibility to traders,” highlights blockchain expert Alex Johnson.
4. Integration of Blockchain Technology:
Blockchain technology is increasingly being integrated into OTC trading systems, enabling secure and transparent transactions while reducing settlement times.
“Blockchain’s immutable ledger is revolutionizing OTC trading by enhancing security, trust, and efficiency in the transaction process,” states technology consultant Sarah Brown.
5. Expansion of OTC Derivatives:
The OTC derivatives market is witnessing an expansion in product offerings, catering to a diverse range of risk management needs for institutional investors and corporations.
“The growing array of OTC derivative instruments is providing market participants with more customized solutions to hedge their exposures,” observes derivatives expert Michael Taylor.
6. Emphasis on Liquidity Management:
Market participants are placing a greater emphasis on liquidity management strategies in OTC trading to mitigate price impact and optimize trade execution.
“Effective liquidity management is becoming a key differentiator in OTC trading, ensuring smoother transactions and minimizing market impact,” advises financial analyst Emily Wilson.
Key takeaway: The future of OTC trading is marked by evolving regulatory landscapes, technological innovations, decentralized models, expanded derivatives offerings, and a focus on liquidity management strategies
Conclusion
In conclusion, understanding OTC in binary options is crucial for navigating the complexities of the market. By demystifying OTC trading, you empower yourself to make informed decisions with confidence. Knowing what OTC means and how it influences binary options trading can be a game-changer in your investment strategies. Delve deeper into the intricacies of OTC trading by exploring reputable resources and staying informed about market trends. Arm yourself with knowledge to stay ahead in the ever-evolving world of binary options. Embrace the power of education and stay ahead of the curve. Ready to take control of your binary options trading journey? Take the first step towards success by implementing your new-found knowledge. Start applying these insights today and watch your trading prowess soar. Seize
FAQ
What regulations govern OTC trading?
OTC trading in binary options is not governed by any specific regulations, as it is an over-the-counter market. However, brokers must still comply with financial regulations and ensure fair trading practices.
What is OTC trading in binary options?
OTC trading in binary options stands for “over-the-counter” trading. This means that the trade is not conducted through a centralized exchange, but rather between two parties directly. It allows for more flexibility in terms of trade timing and pricing, but also carries higher risk and potential for fraud.
What are the risks and benefits of OTC trading?
OTC trading in binary options can offer higher potential returns and more flexibility, as it allows for trading outside of traditional market hours and with customizable strike prices. However, it also carries higher risks, as there is less regulation and transparency in OTC markets. Traders should carefully consider the risks and benefits before engaging in OTC trading.
What are some future trends in OTC trading?
Some potential future trends in OTC trading include increased use of technology and automation, stricter regulations and compliance measures, and a shift towards more complex and specialized derivative products. Additionally, there may be a greater focus on risk management and transparency in OTC trading, as well as potential advancements in blockchain technology for trade settlement and record keeping.
How does OTC trading differ from exchange trading?
The main difference between OTC (Over-the-Counter) trading and exchange trading is that OTC trading allows for direct trading between two parties, without the involvement of an exchange or intermediary. This means that prices may vary between different OTC trades, whereas exchange trading typically has more regulated and standardized pricing. Additionally, OTC trading is often used for less liquid assets, while exchange trading is used for more liquid assets with a higher trading volume.
