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  1. #1
    Solid Member Zanadu's Avatar

    Prices On the Charts !!!

    Hi Friends

    I have noticed the prices of a given asset varies between Meta4 and Netdania ?

    I understand that the broker keeps a margin on the prices of assets (is that what called
    spread ?); hence the price we see on the chart and on the broker's site differs. So far
    it is ok.

    But I have noticed even if the price changes in the chart, that change does not reflect
    in the broker's platform at the same time. Is it a manipulation or just the difference in
    the delay between the chart and the broker's platform take in loading the new prices.

    When I starting BO, there were three outcomes of a trade: ITM, OTM & ATM. It seems
    no one has this ATM, when the trade expires with the same price of the opening, the
    investment is returned.

    I am trying to educate myself of the various factors of this business.

    Someone have any idea of the above matters ?

  2. #2
    Master Member SeasaltMcFish's Avatar
    When trading short exp. times, you'll get ATM more often.

    I also noticed a difference between MT4 and BO brokers. This can be of severe influence on short time trading and less severe on long term trading.
    I'm trying to find a broker that comes as close to my MT4 as possible.

  3. #3
    Solid Member Zanadu's Avatar
    Quote Originally Posted by SeasaltMcFish View Post
    When trading short exp. times, you'll get ATM more often.

    I also noticed a difference between MT4 and BO brokers. This can be of severe influence on short time trading and less severe on long term trading.
    I'm trying to find a broker that comes as close to my MT4 as possible.
    But the price difference between Met4 and Platform is the broker's margin.
    That's what I understand. If that is the case I think it is justifiable because
    the broker needs to have some profit while he buy the asset to resell to us
    for trading.

    That difference will reflect while we opening the trade and its expiry.
    So does it really affect the outcome of our trade ?

  4. #4
    Master Member SeasaltMcFish's Avatar
    I think it depends on where the broker prices originates from.

    Mostly, price will be somewhere between the selling and buying line on MT4 platforms. Binary Options brokers don't use spread.

    It does effect the outcome of your trades, since the MT4 platform will mostly be slightly different from your BO platform.

  5. #5
    Solid Member Zanadu's Avatar
    Quote Originally Posted by SeasaltMcFish View Post
    I think it depends on where the broker prices originates from.

    Mostly, price will be somewhere between the selling and buying line on MT4 platforms. Binary Options brokers don't use spread.

    It does effect the outcome of your trades, since the MT4 platform will mostly be slightly different from your BO platform.
    Thank you McFish

  6. #6
    Active Member jephry88's Avatar
    ATM expiry is very rare because it need that the price is absolutely the same with the entry price at the time when the option expired. If you trade 60 seconds it is more probable to have such type of expiration, but if you trade bigger time frames it is rarely possible. I don’t think it happen at all for daily options.

  7. #7
    Veteran Member hchandra's Avatar
    Hi Zanadu,

    Price difference happens because of data feed used by brokers,
    They take feeds and there might be delay in pricing,
    The difference between mt4 and brokers platform might happen from the data feed to, there might be difference,
    it is our job to figure which one is used when we make transaction.
    from academic point of view, this is market inefficiencies and in trading world there is strategy named arbitrage, buy and sell at the same time, profiting from the spread difference.
    But of course there are always bucket shop brokers who create their own price feeds, that is for us to find.

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