Tradologic, the world’s leading binary options software provider, has started a new project that intends to bring more options to the binary trading sector. As a result of the recent upheavals in the binary options industry, Tradologic’s goal is to bring transparency to the market. The company has focused on setting up a regulated binary options exchange called Binarex . This product is intended to reduce conflicts of interest between brokers and traders, making the industry more sustainable in the long run.
Exchange transaction model
With the company’s new exchange traded binary options, traders can get better quotes and prices (and thus return) while the brokers will still make a profit, regardless of whether their client loses or makes money. An exchange platform will charge a percentage-based commission to traders, who will then make a profit from a losing trade on the other side of their trade. These processes mirror those of the brokers operating in the Forex trading industry, with some companies starting to move away from market maker models and to a simpler processing model, where Client’s transactions are routed through the foreign exchange market. The company’s goal is to address the concerns of traders and regulators. Companies like Cantor Exchange and Nadex already have products regulated by the US Commodity Futures Trading Commission (CFTC), so exchange binary products are used by US retail traders. .
Binarex exchange model
On an exchange, two traders are ‘matched’. So a buyer and a seller agree their prices, with the broker taking a small commission to facilitate the transaction.
Regulations Binarex
Tradologic CEO Michael Golod has stated that he considers Binarex a viable business model that provides clear and transparent terms for all parties. This model has been scrutinized through scrutiny from regulators and lengthy discussions. His firm is still in talks with a number of financial regulators both inside and outside the European Union, and has been met with a warm reception. Many of these regulators informed him that he would be met with a much more welcoming regulatory setup.
Earlier this year, the company partnered with Cantor Exchange, which allows its white labels to access the US market through an Approved Exchange Commission agreement. Tradologic is expected to launch the model at the Finance Magnates London Summit, which will take place at the Brewery on 14 and 15 November. Binaryoptions.co.uk will be on hand to receive all the details of the offer this new.
With any exchange, success will depend on the liquidity in the market. Low volume can lead to unfilled trades, or poor value trades. With a company of relevant Tradologic size, liquidity should be high, giving traders a good chance to take the trades they want. As the platform grows, so does the volume.
First binary options exchange?
The Binarex Tradologic platform will not be the first binary options exchange. IG offers binary on an exchange basis, as does Nadex.