A normal situation it is visible when the market moved quietly, no sudden surge.
Binary options brokerage earnings where?
Binary options brokers earn commissions from trading volume of its customers, the more trading volume the more profit the broker. So arguably the more profit a trader getting fortunately also the company.
Brokers take Commission on each transaction, usually a maximum of 7.5% Commission depending on market conditions, the Commission is not shown in our account. Because the Commission is actually taken directly from the market rather than from our account.
Where the profit traders paid?
The trader's profit comes from the market directly, so the function of brokers is bring together buyers and sellers and brokers will take a Commission from each transaction happens.
Simple example:
I bought the option of EUR/USD at Rp 100,000 then the system IQ Option will automatically enter my order to the market and bringing sellers EUR/USD that were on the market. So happens the deal transaction.
Bring together here does not mean that the seller must also be exactly sell EUR/USD at Rp 100,000 could have been he was selling EUR/USD amounting to 100 million while I just bought 100,000. Well this is where the system IQ Option will process everything automatically, they will combine all transactions the purchaser at that time. So my order will be combined with other traders ' orders to be processed. The picture is like that, but all the process was done very quickly by computer 0.01 seconds.
In the binary option is there such thing as liquidity provider so if a broker of excess order (a condition in which the buyer a lot more than the seller or otherwise) then the order will be thrown into even greater liquidity providers to process order.
Conclusion
The workings of the binary option is similar to the company's banks in General. They will process our transactions and take a Commission for each transaction.
So if you lose if your losses going into the pockets of the IQ Option?
The answer is no
The function of the IQ Option here is to provide a platform so that we can mutually sale and trading with other traders. When we buy an option then there are other traders who were selling it.
