Forex trading can be seen as a form of gambling for instance, betting that the price of the underlying asset will fall below the fixed price.
In this case the fixed price is the price set by the operator of a contract between buyers and sellers.
The fixed price represents a guarantee that no one will attempt to manipulate the price of the asset during the trading period.
In this case the value of the fixed price cannot fluctuate too much as it is locked.
Therefore the fixed price provides traders with certainty.
However the fixed price does not guarantee a profit of any kind. This is because in this case buyers and sellers also take part in the game of bets. For instance the price will be higher or lower depending on what it’s expected that the outcome will be. Therefore, when the outcome of the game is unpredictable, the price of the asset can also be unpredictable.
If the outcome of the bet is predictable, then traders will have an incentive to play the game to maximize their profits.
However if the outcome of the game is unpredictable and the price is going down, then traders might not be so anxious to trade the asset until there is a reason to do so. The price may fall further and traders may not seek to exploit that.
It is the traders who decide when the price of the asset changes over time.
If you believe that there isn’t any reason for your trading to take place, then the fixed price won’t be a good option for you as it would mean that you will have to put up a lot more capital to trade it. A lower fixed price is also seen as risky since you don’t know what the ultimate outcome of the games would be.
A high fixed price is even more risky as even though there aren’t any profits to be had from trading it, you may be able to gain much from your trading activities.
If you want a higher fixed price, then there are several methods available for you.
The first method is to place a higher bid on the stock just before the issue time. A high bid will allow traders to take advantage of the low price until the issue time. If you have a long position in the stock you will have the advantage if the price drops after the issue time, or vice versa.
This method assumes that there is some certainty that the stock will rise after the issue time. This possibility remains unknown to traders and is something they need to decide beforehand in order