OTC Stock Indices Futures: CFDs on Stock Indices Futures (Index Futures)
Indices trading may track stocks, bonds, mutual funds as well as any other security or investment vehicle related to index trading, including indices themselves. Index trading is not based on one share but on the broader market move therefore traders often enjoy this more than trading individual stocks.
Unlike traditional index trading, over the counter (OTC) trading on indices, or contract for difference (CFDs) on indices, are financial instruments that allow traders to invest and take advantage of both prices moving up (going long) or prices moving down (going short) without having to go through the central exchange market.
The trade is performed over the counter (OTC) similar to trading FX, which means the trading is done directly between the two involved parties and not via central exchange market.