Binary Options Payout if your Predictions are Correct
December 29, 2015
Let’s not beat about the bush – the reason why traders are drawn to binary options trading is the potential for generous payouts. The amount of payout a trader can earn can be alluring and range in amounts depending on the trade. It is a fixed value for which the trader placing the trade is aware of upfront. If you make a correct prediction and your trade is successful, your option will expire ‘in the money’ and you’ll receive your binary options payout.
Binary Options Payout – Are Your Predictions Correct?
With Binary Options, if traders are able to accurately predict the outcome of an options trading contract, they get their investment back plus the payout percentage of the initial investment. Understanding how payouts work is important to becoming a successful trader. The payout rate represents a certain percentage of the amount the trader invested into their trading contract.
If the trader correctly predicted the outcome of a trading contract, they will get the initial investment back as well as the percentage of the initial investment based on the payout rate.
Binary Options Payout – Payouts can Vary
Withe binary options trading, the payout your broker pays will depend on the market situation, and you’ll notice that payouts can vary quite a bit between market situations. If you are investing in high/low options, you may even see a payout of 65% on one investment, and a payout of 85% on the next investment.
Payouts are also different between option types. High/low options are thought to be the least risky option type and offer the lowest payouts. High/low contract types are the simplest, only requiring traders to predict if the value of an asset will increase or decrease during a certain period.
High/low options are the most sought after types of binary options and they have the best payout potential for traders. The trader must predict the movement of an asset during a certain time frame. High/low options usually never offer payout rates above 100%. They may well pay out less than other contract-types but they are easier to predict, and this ensures higher success ratios. As such, they are recommended to newcomers. Because Touch- and boundary options are more risky, they offer higher payouts – sometimes even up to 500%.
Binary Options Payout – Good Payouts require a Good Broker
These different payouts require different trading strategies and one of the biggest factors to getting good payouts is your broker, so it pays to compare broker’s payouts. Your binary broker will display the payout you’ll get if you win your option before you invest.
The payout rates of binary options also depend on the type of the binary option with some contract types being easier to predict than others. It goes without saying that these easier options have lower winning rates.
There is no doubt – the potential to earn returns is what attracts binary options traders, and subscribing to a broker who offers high payouts is a wise choice. Being aware of the potential payout upfront can help you gauge how much money you can earn and what you stand to lose.
Binary Options Payout – Choose a Broker offering High payout Rates
Understanding the nature of a binary options payout can guide traders, and by having the right broker and a good understanding of your payout upfront means you’re able to make better choices on the execution of your binary options trades.
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All info was correct at time of publishing