Profit and Risk

Binary options is a numbers game.

We average about 60-65% In The Money (ITM) on about 100 trades per month.

On the binary dot com platform, the payouts fluctuate between 70 – 86% usually.

Now, the only factor that you can affect with regards the outcome is the trade amount.

Obviously the higher the stake per trade the more will be the profit at the end of the day, but of course so will be the draw down in a losing sequence.

We suggest to have your account funded correctly and to trade with only 1-3% of your account balance as a maximum.

In fact we strongly suggest that you only trade with 1% of your account balance.

For example if you wanted to be trading $1 per trade, then ideally you want to have your account funded with at least $100 and that would be 1% of your account balance.

A maximum for a $100 account would be $3 or 3%

Trading with just 1% of your account balance per trade is how professional traders in all fields trade and the reason is to limit risk.

Let us say that you had 10 losing binary options trades in a row, which certainly can happen, and you were trading $5 per trade on a $100 account.

That would be a 50% draw down of your account balance and you definitely do not want that.

However if you were trading the same $100 account and just $1 per trade and had the same losing 10 trades, then you would only be showing a 10 percent draw-down, which is quite acceptable.

Managing risk is what it is all about.

If you stick to trading just 1% of your account balance you can look forward to being able to survive the  inevitable draw-down periods and still be in the game for the winning trades.

With just a 1% trade amount per trade you can easily be looking at a 10-50% return per month.

Make sure that your account is funded correctly.

Seriously, this is the single most contributing factor that leads to people blowing up their accounts.

You have to manage risk and 1% of your account balance per trade is acceptable risk management, with 3% being the absolute maximum.