Binary option brokers hedge their risks

Freddie
Freddie Posts: 9 ✭
in General
Do binary option brokers hedge their risks or do they operate like a casino on the assumption, that overall they will be profitable?
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  • The_Geek_MH
    The_Geek_MH Posts: 860 mod
    A little of both. The binary options brokers hedge their bets by putting a small spread (for the most part) into the prices you get your options filled at to help control potential losses... but they also know that most traders suck and will lose their asses.
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