The basic system – About win and lose-
What is the win and lose in binary option? How to relate to the mindset to win and brokers!
If you think it as a choice between the two, it is going to be losses!
You can invest quickly in a binary option.
Even though, you need to know how to win and lose are decided.
Initially, a binary option is one of the choices in Forex or stocks trading, and both were close.
Now, People often thought as an independent one and A lot of brokers open, especially for a binary option.
In that kind of situation, some companies still think it as a potion, and those systems are a bit different.
I will explain a general binary options trading system here.
A binary option is a relatively new commodity so that the Financial Services Agency gradually start setting the rules.
The old binary option may take a different system from the new one so that you need to be careful if you refer old information to internet or books.
Let’s learn the system of win & lose
How can you get a profit? The only thing you need to do is that you choose “High” or “Low.” If it is correct, you get “Ticket price x payout rates” as a dividend, and if it is wrong, the stakes become the loss.
Some high payout rates company offers 180% as payout rates.
But Why do you think that it is not 200%, but 180%-190%?
As you see the list above, if it is 100% loss rate with the same stakes, the benefit rates is just around 80%. In this case, even if you keep 50% winning rates, it is difficult to get a profit.
However, where the rest 10%-20% has gone?
It is the part for a broker to make a profit
In another investment, a broker makes a profit through trading fees.
If a trader makes a significant profit, they also take a lots fee from the trader.
In this system, a certain number of trader’s profit decreases so that traders had to think of that.
In binary option, a broker does not make a profit with fees.
They make it with people who win by decreasing the rate from 200%.
The company’s profit system is “the stakes from loser goes to the winner.”
If you put the payout rate 180% and there are each 100 winners and loser, the investor only has to think of their stakes and dividend.
Even if a trader gets a big win, they do not need to be exploited a lot so that it is entirely fair.
However, brokers must make a profit so that they cannot payback winners more than losers.
They sometimes show us “Sellout” to prevent people from buying more ticket.
In this way, some companies fill too many gaps between “High” or “Low.”
Why they can achieve the high payout rates?
I have talked about company’s side profit.
But if they offer 200% payout rates, you may think “how on earth they can make a profit?”
The key is “spread” although some companies call this differently.
Predominantly, it set around a draw and if a trade finish in that width, it becomes a loss.
When you select a broker, you have to check how wide the spread is.
Because it depends on brokers, you need to be careful.