The broker shows prices with a delay. We show how OnlyBinary opens a trade in that pause and what the result depends on. There is no need to know anything about trading beforehand.
OnlyBinary trades with a binary options broker by itself, following the rules you set. In this lesson we look at what it earns on. There is no need to know anything about trading beforehand.
A broker is a company through which you open trades. A trade with an options broker is simple: you choose whether the price after a set time will be higher than now, or lower. Guess the direction right, and the broker pays a percentage of the trade amount. This percentage is known in advance.
The broker shows prices with a delay: when the market price changes sharply, the broker's price does not change at once. A person will not notice this delay. But the program has a fast source of prices, the fast feed. The program constantly compares two prices: on the fast feed and at the broker.
Usually the two prices move together. But sometimes the price makes a sharp jump. The feed shows it at once, and the broker shows it late.
The feed already shows the new price, the broker still shows the old one.
The program opens a trade on the price going up, at the broker's old price.
The price is already above the trade price. If it stays above until the end of the term, the trade closes with a payout.
When the jump is down, everything is the same, only the trade opens on the price going down.
The lesson uses a training market: the price moves on it are set in advance. A Pocket Option test account is connected, the symbol is GBPUSD, trading is already running.
The chart has two lines. The green one shows the fast price from the OnlyFast feed, the yellow dashed one shows the broker's price. At the moment of the jump the fast price is already up, the broker is still down, and the program opens a trade on the price going up. Less than a second later the broker catches up.
The trade appears below, in the trade history. Until the term runs out, the result says Pending.
The result depends on three things.
A minute has passed, and the trade has closed. The result is Win: plus 90 cents on 1 dollar.
In the next lesson we take this trade apart: what expiry and payout are, and where the 90 cents came from.
Set the jump, the broker's lag and the speed of the order. The trainer shows whether the trade opens at the broker's old price.
The feed showed a jump up, and the broker was still showing the old price. The order reached the broker in that pause, and the CALL trade opened at the old price. The broker caught up, and the price is already above the trade price. If it stays above until the end of the term, the trade closes with a payout.
The model is simplified: time is shown without numbers. In the lesson the broker caught up with the feed in less than a second.
Questions on the lesson. You can change an answer.
We take this trade apart: what expiry and payout are, and where the 90 cents came from.
Open the next lesson