Binary Options Broker Pocket Option provides the opportunity to make trading operations on multiple assets. To ensure this is possible without interruptions and problems, it is necessary to receive correct quotes that do not differ from exchange rates. There are quite a few providers of exchange information. Market participants acquire their data for their terminals. Pocket Option is no exception and also uses the services of such a company.
Contents:
- Quote Provider for Binary Options Broker Pocket Option
- Where Do Exchange Data Come From?
- What is OTC and How Does it Work?
- Cryptocurrency Rates at Binary Options Broker Pocket Option
- Conclusion
Quote Provider for Binary Options Broker Pocket Option
Quotes for Pocket Option are provided by eSignal.
This company is international and provides its services to many companies worldwide.
Exchange data is collected from different sources to ultimately obtain accurate figures, as the company's reputation depends on accuracy.
It is worth noting that quote data is provided for a fee, which indicates Pocket Option's seriousness, aimed at quality service and providing high-quality services.
Where Do Exchange Data Come From?
To form asset prices, someone must buy or sell them. For example, the stock price is determined by supply and demand on stock exchanges that exist in developed countries. On these trading platforms, buy and sell transactions are concluded, based on which the rate of financial instruments is formed.
Since stock exchanges are located in different countries and, accordingly, in different time zones, information is transmitted to providers without time interruptions. While European exchanges are closed, Asian exchanges are working and vice versa.
The same can be said about world currency prices. They are determined not by forex brokers, but by large world banks where international currency operations are carried out with huge amounts, calculated in billions of dollars per day.
Therefore, the value of any assets is determined by "world markets", and only then this information is transmitted to exchange data providers, who in turn provide it to their clients.
Do not think that such processes take a long time. In the internet era, all information is transmitted through communication channels in seconds, and that is why you can observe how the price of, for example, a currency changes every second.
Since banks and any financial organizations do not work on Saturday and Sunday, no official quotes are provided on these days because trading is not conducted in full. But Pocket Option still allows its clients to trade on weekends thanks to the OTC market system.
What is OTC and How Does it Work?
OTC is an over-the-counter transaction. Such transactions are made between two parties, and in the case of the Pocket Option platform, between the broker and the trader.
On weekends, the broker determines the value of assets, and it is not official. They are based on transactions made by traders on the Pocket Option trading platform, and if there are more buyers, prices rise, and with more sales, they fall.
On the one hand, such quotes cannot be considered real, but on the other hand, for traders who do not always have the opportunity to trade on weekdays, this is an excellent alternative.
You can understand which rates are off-exchange by the asset name on the Pocket Option platform:
Such assets will always have the suffix "OTC".
Cryptocurrency Rates at Binary Options Broker Pocket Option
Cryptocurrency quotes are calculated much simpler, as this sphere is not centralized. Since all cryptocurrency exchanges work without days off 24/7, this allows Pocket Option to always get the most up-to-date cryptocurrency prices.
The blockchain technology itself also allows obtaining coin prices in fractions of a second. Therefore, cryptocurrency trading on weekends does not change, and the market remains, so to speak, "official".
Also, if desired, you can always compare the broker's prices with cryptocurrency exchanges.
Conclusion
As becomes clear, the binary options broker Pocket Option values the company's reputation and therefore tries to provide quality services, starting from market data and ending with transactions. Do not forget that there are many quote providers, so the value of assets from different brokers may differ slightly. But as practice shows, usually the price difference is a maximum of 1 point, which is not critical and is acceptable.
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See also:
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