6.3 Operations of the derivatives market: The relative advantages and disadvantages of exchange traded versus over the counter (OTC) agreements; Key features, such as standard contracts, tick sizes, margin requirements and margin trading

The derivatives market operates through two main channels: exchange-traded derivatives (ETD) and over-the-counter (OTC) derivatives. Let’s explore the operations of these markets and discuss their advantages and disadvantages. We will also cover key features like standard contracts, tick sizes, margin requirements, and margin tradin