SAIFM RPE Derivatives Market Practice Questions - SAIFM Registered Persons Examination - The Derivatives Market Exam

OTC derivatives are customized bilateral agreements, whereas exchange-traded derivatives are standardized contracts traded on an organized exchange OTC derivatives carry zero counterparty risk, while exchange derivatives carry maximum credit risk Exchange-traded derivatives cannot be cash-settled, whereas all OTC derivatives require physical delivery OTC derivatives can only be executed by retail investors, whereas exchanges allow only institutional banks