When it comes to binary options trading, different contracts come with different payouts. This can be anywhere between 65% and 90% and it usually depends on the broker and the trade you have placed.
If the payout rates are lower than 65% than it is important that you look for another broker. Today, there are some brokers who offer a small refund in case you lose the trade. The amount is low and it could be around 15% of the amount that you have invested. Example:
Refund possibility: 15%
Profit trade: 85%
- Full Payout
Refund possibility: 0%
Profit trade: 85%
So if you have made an investment of $1500 with a wining percentage of 80%, you will receive $1500 in addition to the 80% profit which comes to $1200. Your total payout will be $2700 if you win the trade or the trades expires in the money. Traders are notified through the trading platform about the total payout that they can receive.
Binary Options Refund
Based on what is being offered, you can get a refund possibility of 15%, but with a payout of 65%. So if you win, you will get $2475. If you lose, a small amount of your investment will be refunded. So if the refund possibility is 15%, you get $225. If you choose the full payout option, you will lose your investment of $1500 if the trade expires out of the money.
But you must always remember that you cannot expect to get the same payout for every trade. For example, if the payout for one is 80%, it may not be the same for the next trade. So it is crucial to use a plan and carry out analysis when making trades. Payouts keep changing and there are many factors that influence the payout rate of the trades.
How to See The Binary Options Trading?
This must not put all your money on one trade hoping to win big. To find success, you must build your trading portfolio by executing trades that come with smaller payouts. If you target the big one right at the start, the result can be very damaging for your trading career.
Any experienced trader will be able to tell you that proper risk management is very important when trading binary options. Taking a huge risk is never advisable because if you lose the trade, you lose a lot of money. On the other hand, if you place small trades and lose, you will still have chances to recoup your money on the following trades.