Day trading stock simulator free
The very basic premise the industry works off is: In a very long time frame the amount of buyers (Call options) equals the amount of sellers (Put options). Based on the above principle, the broker will never lose money, assuming he will be in the business long enough to overcome possible exceptional markets swings. The simple genius of the binary option industry is: For every loser there must be a winner so: There are 100 buyers (lets call them losers) and There are 100 sellers (lets call them winners) In this scenario: The broker charges the looser 100 and pays out 70-80 to the winner, keeping a whopping 30-20 of every bet in his own pocket.
All the binary option broker needs to do is to maximise the trading volume to increase profits and lower the risk.