Binary options: Where did the courses come from?…

Whoever is involved with various brokers with binary options will most likely quickly find that the courses never match one-to-one. The questions then automatically arise: Where do the courses come from? Can the courses be manipulated? Which plus500 review courses are right?

In order to understand where the courses actually come from, you need to know how the trading platforms actually work, where 24option review they originate from, and where they come from

Binary options are traded over the counter (OTC). That is, trading takes place between the broker as the issuer and the trader. On the other hand, classic options are traded on futures exchanges.

The brokers place the courses on their trading platforms, so that the trades are not forwarded to central trading venues. Accordingly, no exchange or commission fees are due. The course supply depends, inter alia. From the trading platform of the respective Copy Trading review broker. Currently there are the following platform providers:

Most binary brokers work with the SpotOption trading platform and obtain the prices from a data provider or the courses are delivered via a realtime data connection. One of the most well-known is Thomson Reuters, which refers to the binary options one-to-one courses and passes them on to the trading platform in IQ Option review real time. Since traders have many options to check the prices, Reuters is very careful about an exact course tracking and course delivery.

According to experts, it has been observed over a period of several years that there has been a difference of one point within a second in the case of off-exchange price determination. The reason for these minimal delays is not a go now no manipulation, but simply a technique. The Internet connection, the quality of the broker’s servers and the location of the broker play an important role here.

It can be problematic in the etoro review case of deficient datafeeds, since they cause a so-called slippage. This means that there is a difference between the booked and the executed option price. With the simple call and put options, however, this does not matter, since it is only a question of whether the underlying value is above or below the entry point when opening the Social Trading review trades. The actual difference would be very small.

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Manipulation of prices

It is reported again and again that there are supposedly trading platforms, which can easily manipulate the courses. Traders can not recognize this minimal manipulation and anyoption review they are also not detectable. Only the comparison with the real-time rates could help here.

In principle, however, the brokers are legally making very good money and therefore have no reason to cheat their customers. The incentive to fraud is therefore zero. However, to be safe, traders should only deal with binary options with known and regulated brokers.

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