Do you want to know everything about the IQ Option spread? This article gives you all the answers.
Spreads can be described as a difference between a sell and buy price of a particular underlying asset for a targeted Call or Put option. The price difference is shown in percentage below buying option. With IQ Option spreads, traders can understand how much is it necessary for the price to modify in order to lead to potential money gain.
General risk warning
The financial services provided by this website carry a high level of risk and can result in the loss of all of your funds. You should never invest money that you cannot afford to lose.
Everything about the IQ Option Spread
The spread is one of the most dreaded elements of trading conventional assets. Simply put, employing a spread means that your broker will sell you an asset for a higher price than he is willing to pay for it.
The difference between the higher price, which is called the bid price, and the lower price, which called the ask price, is the spread.
While nobody likes to pay a spread, with regular assets, brokers can make a convincing argument to why they use a spread. When you buy or sell an asset, your broker has to access the stock exchange and place an order.
This action involves systems that need to be maintained, licenses for certain types of software that need to be bought, and a certain amount of manpower to keep the entire system running. Taking a fee for this service seems reasonable.
With binary options, however, things are different. Since you do not buy or sell an asset but make a prediction about the future of an asset’s price, your broker does not need the large system that enables communication with the stock exchange. Every transaction will be strictly between you and your broker.
With this price system, IQ Option offers you an interesting basis for your binary options trading. Make sure that you never invest in binary options with a broker that does not clearly state which price you will get. There are some rare examples where brokers tried to use the worse price for your investment. If you invested in rising pricing, the broker tried to give you the lower bid price. If you invested in falling prices, the broker gave you the higher ask price.
*Risk Disclaimer: The financial products offered by the company carry a high level of risk and can result in the loss of all your funds. You should never invest money that you cannot afford to lose.