The exchange rate between the Euro and U.S. Dollar is at 80% but fluctuates little by little constantly.
SiamOption takes the position of a broker who sells off options to investors, and traders who wish to keep their portfolios diversified. They buy options from SiamOption to enjoy a fully functional platform of all the information they need to make a decision on commodities, stocks, money market and more.
If a trader is using the SiamOption platform, the average rate of return between the U.S. Dollar and the Euro being 80% it leaves quite a bit to gain by winning the decision on an asset. SiamOption gathers tools needed in order to make this happen with skilled professionals keeping a close eye on what’s happening in the market, and can lend an extra hand to make things run smoothly, thereby gaining a more trustworthy edge over the competition.Here’s how it works
An example would be that if investor “A”, we’ll call him Tom, believes that the price of an asset would go down, then he would make an investment on the asset going down. For easy math, let’s say he invests $100.
Another investor “B”, we’ll call him Jim, believes that the same asset price will swing up, so he would make an investment betting the price of the asset going up. For an easy math example, let’s say this trader also invests $100.00.
If the price of that particular asset goes up, then investor “B” wins the option. He receives an 80% return which comes from the investment of investor “A”. The 80% is deducted from the investment of investor “A”. So investor “A” loses his investment to Investor “B”. Investor “B”’ gains $85.00 totaling his gained return to $185.00. 7.5% of the combined investments ($200.00), equaling $15.00, goes to the broker being SiamOption. This amount comes to $15.00. In any outcome whatsoever SiamOption will receive a 7.5%.
On a small scale this example works very well as the SiamOption platform is fully functional with real time information 24 hours a day, 7 days a week. This being said, still on the SiamOption trading platform, there are thousands of different kinds of asset investment trades made every day, and plenty of time to trade. On a larger scale let’s see what happens with larger investments.
Instead of Investor “B” Jim, investing $100.00, we’ll say he joins a group “Bulls” and they invested $10,000 on that prediction of the asset. While investor “A” Tom, joins a group “Bears”, and only invests $8,000.00 on the same. This would make an uneven trade, which would bring in another kind of regulator called a “market maker”. The difference between the $10,000 and the $8,000 is $2,000. This difference is handled by the market maker who is willing to take a risk when this happens. The market maker balances the trading standing by to see the outcome of the exchange of the asset.Here’s how:
If Investor “Bears”, investing the $8,000 is the one that wins, and the price of the asset goes down, then first, the market maker takes the $2,000 difference as a commission which covers potential risks.
will take their commission of 7.5% of the total after commission is paid to the market maker at $1,200.00. Investor “A” receives a return at 80%, as well as his initial investment totaling $14,800.00, and investor “B” loses his investment.
A risk for the market maker will happen when investor “Bears” wins as we run the same scenario. But, in the reverse, things are changed a bit. The initial commission taken by the market maker will help to compensate the investor from its own funds to make sure investor “Bears” is rightly compensated for their investment because the investment was not covered by investor “Bulls”. So then the $2,000.00 difference becomes only a holding fund to cover these types of potential situations that happen during everyday trading on the SiamOption platform.
So at this point, investor “Bears” loses his investment, investor “Bulls” is compensated through the market maker and gains a guaranteed total return of the 80% which is $14,800.00. The market maker receives the balance of what is left as commission if any. This is the market maker’s job.
To insure all smooth operations happening simultaneously, SiamOption has developed several relationships with many different market makers which keeps constant flow, and uninterrupted operations in good condition with 100% response to any and all situations in the ever changing trading market.
SiamOption works as a broker, and guarantees that trading operations will all work smoothly, and traders will receive their profit from any successful transaction.
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