A derivative is a financial contract whose value comes from an underlying asset like a stock, commodity, or index. Instead of owning the asset, you trade based on its price movements. These contracts can be traded on exchanges or OTC. They’re used to manage risk or to speculate—often amplifying both gains and losses.

Overnight financing is a fee charged for holding a leveraged position overnight. It reflects the cost of borrowing funds to keep the trade open. It typically applies to positions without an expiry date (like CFDs), while futures typically include this cost in their pricing (via the spread).

OTC (over-the-counter) trading is the buying and selling of financial instruments directly between parties, without a centralized exchange. Trades are typically done through brokers or electronic platforms.

Regional stocks are usually traded on official exchanges like Dubai Financial Market or Saudi Exchange (Tadawul), where pricing is transparent and regulated. Some companies may list on smaller exchanges or multiple exchanges. OTC (over-the-counter) trading, on the other hand, happens directly between parties through brokers or electronic platforms, without a centralized exchange, typically offering less transparency and liquidity.