OTC

Over-the-counter (OTC) refers to the process of how securities are traded for companies not listed on a standard exchange. For instance, the forex market is made up of two levels; the interbank market and the OTC market where individuals trade through online platforms and brokers.

Overbought

Since traders use different tolls to analyze a currency, overbought is a subjective term. One of the technical indicators that determines if a currency is overbought, is the relative strength index (RSI).

Oversold

As well as ‘overbought’, oversold is a subjective term since traders use different tolls to analyze a currency. One of the technical indicators that determines if a currency is oversold, is the relative strength index (RSI).