When I give my money to a company to hold on to, I get anxious. Wonder if anything funny is happening to my money behind the scenes. Want to know what exactly is happening to my money, even if there isn't any funny business involved.
That's one reason I really like One Two Trade. They're very transparent about what they do with my money. Also, they're based in the US, meaning that they are subject to some very strict financial regulations! Let's take a tour of what's underneath the hood at OneTwoTrade.com, starting with what happens when you use a binary option.
When you hit the "up" button to trade an asset at OneTwoTrade.com, what you're really doing is telling OneTwoTrade,com to use your money to buy call options. When you hit the down button, you're telling it to buy put options. Calls and puts are contracts that give the buyer the right, but not the obligation, to buy or sell an asset at a particular price (the "strike price") until a specified time (the "expiry time"). If the asset price meets or exceeds the strike price before the expiry time, the value of the option increases greatly. If not, then the value of the option hits zero.
When you make a 30 minute $100 gold trade with the "up" button on OneTwoTrade.com, for example, the website uses that $100 to buy $100 worth of gold call options. The transaction is instantaneous, so there isn't any room for them to mess around with my money, which is very important to me.
The reason why OneTwoTrade.com is able to tell me exactly how much I stand to win or lose on a given trade before actually executing the trade is because they calculate the possible profit range, and determine the most likely payout in the event that my trade is a winner. That calculated amount is how much I get paid when one of my trades wins. The fact that they dole out my profits in this manner is also comforting, for two reasons.
Firstly, this is the method by which OneTwoTrade.com makes their money. Nothing worries me more than not knowing how a company makes their money. However, with OneTwoTrade.com, I know that they make their money by keeping a tiny sliver of the profit when I win a trade. The potential profit that they show the user is slightly less than the actual average potential payout, and OneTwoTrade.com keeps this difference. This means that they definitely don't need to resort to unscrupulous methods of acquiring their income.
Secondly, by providing a single, definite payout amount, I often earn more from a trade than I would have if I just bought the options myself. For example, If you buy $100 in calls for gold with a 30 minute expiry time, and the price of gold only goes up $0.0001, you might earn just a dollar or two. On OneTwoTrade.com, however, I would have earned around $85 in the same scenario! The single definite payout also lets OneTwoTrade.com offer me some downside protection. If I made that same example trade, and the price of gold fell, I would have simply lost my entire investment. OneTwoTrade.com, however, cushions the blow by letting me keep around 10% of my investment in these sorts of situations.
Now let's talk about those financial regulations. Binary option clients based in the US are not allowed to engage in this kind of activity. Furthermore, institutions such as OneTwoTrade.com are subject to regular inspections to ensure that forbidden activities that endanger my money aren't taking place.
It's easy to be skeptical about online trading platforms, but OneTwoTrade.com meets all my criteria as a trustworthy place to park my money and watch it grow. And that's saying something, because I'm a very picky guy! I'm looking forward to using this site for a long time to come.
Author: Ethan Burton
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