The premise of Trade Equal’s trading system is that binary options being a mechanism in which buyers and sellers have to be matched in order for a given position to be opened, instead of brokering the transaction on the contract, it is preferable to link the buyer and the trader directly to each other. Therefore when you trade with Trade Equal, what you are doing effectively is placing a suggestion for a buying or selling price on a given asset, to expire in a given period of time, which will be picked up by another investor just like you who has a matching position in the market.
When this trading system is implemented, the payouts change according to the demand there is for the position you wrote as a trader. This serves to reward traders directly for the demand their trades generate, and also serve to quantify risk more properly. In theory a trader could get a return of 700% on a given trade. Such a high rate of return directly reflects the risk taken by the trader – the higher the risk the higher the potential return – and it reflects the demand there is for the position he or she opened.
The payout is established by the amount the trader is willing to invest in the position he or she opened. Basically when you write your binary option position, and someone buys into it, the trader at the opposite side of the transaction will earn the amount you chose to risk if the position closes in his or her favor. If the position closes in your favor, you will get a rate of return based on the investment of the trader or traders at the opposite side of the contract.
This revolutionary peer to peer trading system, makes Trade Equal an automatic leader in the binary options industry, as well as the standard bearer for social trading. With their system in place, Trade Equal effectively plays the role of market facilitator as opposed to the role of the classic broker. This guarantees that the trade will be made cleanly, fairly and equitably according to the terms established. This trading system is a real game changer in the binary options industry. Try it out and see for yourself.