Binary options brokers usually place a put or a call on behalf of an investor in the market. They profit from either taking a fee off of this transaction, or from covering the risk involved in the trade, by acquiring the asset or countering the investor’s position in the open market according to their risk management protocols. Under these conditions, traders don’t actually have full control on their open positions, since there are delays and all sorts of procedures that may affect the analysis underpinning their decision. Trade Equal found a way to eliminate all those negative aspects of binary options trading by developing an innovative social trading system.
The most striking feature of Equal Trading’s system is its simplicity. Developers went back to the basics of the market place and started looking at binary options trading as a simple transaction between a buyer of a good and a seller of the same good. This is how they came up with the idea to match the buyer of an option with the seller directly. Traders opening a binary options position with Trade Equal will effectively turn their suggested position into a good for which a buyer has to be found. This position will be picked up on the other side by an investor interested in a contract for the same asset that expires in the same period of time.
One of the most intriguing features of this system is that the payouts change according to the demand there is for the position suggested by a given trader. Traders who pick up the position suggested and the ones who suggest it, will be locked in a relationship in which return on investment depends squarely on the rules of demand and supply. Traders could get a return of 300% and even more depending on demand and supply, adjusted to the appetite for risk in the market. The higher the risk the higher the potential return.
Payouts become a function of how much will other traders be willing to pay for the position suggested. When you write a suggested position and another trader buys into the contract, your profit will be determined by the amount of money that the other trader or traders are willing to invest in the position you opened. Rates of return are determined solely by the amount of investment on the opposite side of the contract, while the amount on the suggested position caps the risk the seller is willing to take.
This true market place trading system will surely catapult Trade Equal to the top of the binary options industry. Trade Equal is effectively redefining binary options brokerage, by becoming facilitators instead of brokers. Trade Equal is thus guaranteeing a clean and fair trade, based on contract terms, demand and supply. You can join the revolution and participate in the first open binary options market where profits are determined solely by traders just like you.