How much will I make?

We get this question all the time and we always refer to our page on Profit and Risk, which explains this in detail.

You absolutely must read that page and understand it before trading binary options.

⇒⇒ Go read about Profit and Risk here

In an update to Profit and Risk, a few things have changed on the www.binary.com platform.

The main thing to note is that it is now practically not worth the while to take trades with an expiry of 10 minutes or less.

We have seen payouts drop right down to below 50% and the worst case so far has been a 7 minute trade that paid out only 24.10%

AUDNZD paying out 24 percent
AUDNZD paying out 24 percent

If you are getting paid out at 24% and losing at 100% you seriously have no chance of coming out ahead

This has forced us to take the longer expiry times like in the 15 minute to 1 hour range so that we can keep the payouts averaging above 80%, which makes binary options a worthwhile endeavour.

This has proven much better and we are averaging just above 80% on payouts now.

The downside to this is that there are obviously less trades taken over the course of the month.

How much will I make?

If we take our binary options equation from Profit and Risk and plug in some basic numbers now, we will get a very realistic idea of the answer to the question; “How much will I make?”

Our Binary Options equation:

Profit = Trades Taken x $ Amount x { ( Success x Payback) – (1 – Success ) }

For our example, we will say that we have:

100 Trades Taken for the month.
60% ITM or Success
80% Average Payout or Payback
$10 Per Trade or Amount

Profit = Trades Taken x $ Amount x { ( Success x Payback) – (1 – Success ) }

Profit = 100 x $10 x {(60% x 80%) – (100% – 60%)}

Profit = 100 x $10 x {(0,60 x 0,80) – (1,00 – 0,60)} work it out in decimals

Profit = 1000 x { ( 0.48) – (0.4) }

Profit = 1000 x 0.08

Profit = $ 80

So we made $80 for the month trading $10 per trade with the basics of 100 trades taken , 60% ITM or success and a payout of 80%

That is the new normal.

Let us take a look at different trade amounts and the results with the same settings.

Trade Amount = Profit

$1 = $8

$2 = $16

$3 = $24

$4 = $32

$5 = $40

$6 = $48

$7 = $56

$8 = $64

$9 = $72

$10 = $80

$15 = $120

$20 = $160

$25 = $200

$30 = $240

$35 = $280

$40 = $320

$45 = $360

$50 = $400

$100 = $800

That is the reality of Binary Options trading.

Of course you do not want to fall into the trap of over trading your account, so we always recommend to trade a maximum of 3% of your account balance per trade.

That means that a $500 account should only trade $15 per trade and expect to make $120 return for the month or 24% per month which is 288% per annum.

So start with a $500 account and expect it to be around about a $2000 account after a year.

That is binary options trading reality.

Of course you could just take that same $500 and leave it in the bank for 2% per annum and end up with $510 after a year.

Doesn’t  look that bad now when you look at it?

Other ways to impact the outcome besides increasing the trade amount per trade is to increase the number of trades taken per month.

That is where using a binary bot, like the one we offer, as well as a copy trading service, like ours, can dramatically increase your number of trades taken over the month.

Of course you could aim for a higher ITM or success rate, but let’s be honest; 60% to 65%  is the reality of a good trader averaging over 100+ trades on a monthly basis.

 

 

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