About Binary Options Payouts
The functioning of payout rates is realized in accordance with a simple formula. Let us demonstrate the scheme on a real example. For instance, imagine you invest $2000 while the payout percentage equals 80%. In case your prediction turns out to be correct and you finish a trade in the money, than the profit you are going to receive comprises a full value of the investment ($2000) and 80% from this sum ($1600). Conclusively, the derived profit equals $3600. The maximal profits that may be received by you are mentioned on the account even before you place a trade. In this way, you are always informed about the possible winning rates.
Payout rates on diverse options
One must note that different options that may be put on trade inflict different levels of binary options payouts. Thus, in case you receive a high return on the first trade that is sustained by you, you can not expect the same payout while trading the next time. The percentages on return may vary from 65% to 90%. If the broker you review offers the return rate that is lower than the indicated level, we recommend avoiding it. There are also some platforms that suggest providing you with a refund sum in case your prediction on the price fails and you end up in “out-of-the-money” position.
The refund rates are, usually, small. There is also the option to disregard this money. In this case, certain implications can be imposed on your payout rates. Specifically, in case you accept 15% refund option, your payout level will equal 70% and your profit trade payout is 85%. If you choose not to accept a refund possibility, you can expect 85% payout and 85% payout profit rate.
Choosing the most optimal payout
The reason why many new traders do not manage to realize winning trades from the beginning is that they expect to earn large sums of money with one trade. The guarantee of success, however, is embracing small payout rates and enhancing them gradually. If you take up high return percentages from the very beginning, you are bound to fail.
The practical example that we indicate in this section is aimed at the exemplification of the system of trading that we describe. For instance, let us refer to two traders (A and B). The first of them takes up maximal payout rates so that to derive the biggest profits. In contrast to him, the trader B operates on the basis of multiple small trades in order to build up a firm trading account.
In a big perspective, both traders follow the same aim. But they perform a different number of trades that are to be executed. Since the outcomes of trades are hard to predict, one can never be sure of the specific result of an investment, which is why it is impossible to say which position is correct.
The question is whether a specific strategy on the mode of investing may be applied. The answer is no. One can never predict which trader is going to succeed. Thus, it may be likely that Trader A reaches a desired result quite quickly while Trader B may work for a long time in order to derive the same profits. Still, the situation may be opposite too. We recommend embracing the strategy of the second trader since it is more secure in comparison with the first one.