Binary Options Trade Amount and Trade Extension

February 7, 2014 12:25 pm

Minimum Trade Amount

binary_options_euro_usdThe inherent importance of the minimum trade amount is in an implicit relation with the minimum initial deposit. The chance of losing a lot of money in the beginning is proportional to the minimum amount you have to deposit, as well as to the minimum amount you’re forced to trade.

You need to realize this important point before you can start making money out of trading binary options. You need to first learn how the trades are conducted, as well as the integral principles of this finely tuned money-making process, and after you’ve reached that level you can expect to make a profit. You can’t hope to gain any considerable net income without first knowing the intrinsic mechanisms of the trades. If you’re forced to invest a lot from the beginning, then there is a high chance you might drop the whole endeavor altogether due to significant financial losses.

For example, some binary options brokers allow you to trade with as little as EUR 1. This is a superb initial price for beginning your venture in the debts of binary options trading. As a reference, requires you to invest no less than EUR 24, which means 24 times more on each trade. This means that in the beginning, while you still have no clue of what you’re doing, you will probably lose 24 times more than if you start with a broker that allows you to invest EUR 1.

Of course, when you manage to win, you will win a lot less, but that’s just the thing – until you have a solid idea of what you’re doing, you are doing nothing but gambling. Statistically speaking, you will lose more than you make until you learn the ins and outs of the trade and in this regard you will be able to make 24 times more trades with the same capital just because of a smaller minimum trade amount.

Some options brokers offers is the “Get Prices” option. You can choose a payout amount (meaning your initial investment plus the potential return) and the system will tell you exactly how much you need to invest in order to receive that particular sum. Click “Get Prices” after you enter the payout and the system will do all the math for you. Beware, though, because with the help of this system, greed can easily overwhelm you which can cause significant losses. Always keep in mind that there is a possibility that you will lose your investment, so don’t go off betting your entire paycheck because of great potential returns.

Trade Extension

One of the most frustrating feelings in binary trading is to call a trend and then be off the mark because you’ve missed for mere minutes. If only there were a way to extend the trade, then you would’ve been able to win and collect your profits. Ah, but wait – there exists a method that can allow you to do just that. Some brokers actually offer trade extension for a fee (sometimes this extension is called a “roll over”). Of course, upon winning, you won’t collect as generous a profit as you were hoping for, but it’s definitely better than losing your investment because the stocks of a company decided to stop rising for a minute (perhaps to have a coffee break) and as a result you were just a bit off the spot (for example). Of course, the underlying risk is that if you still end up losing, you would’ve just wasted the fee for nothing so you should only take this route if you genuinely believe it’s worth the risk.

Different brokers have different conditions and different fees for extensions. For example, Banc de Binary will allow you to ask for an extension up until 10 minutes before the expiration time. So if things aren’t quite going your way, there is a chance you can salvage the investment. Even better, if things are going your way and you think there is a really high chance you will win, you can double your bet by using the “X2” button. Note that pressing this button opens a second trade with the time stamp and payout based on the current values, so the payouts from the two trades may vary.

Early Trade Closing

Just like you can get extensions with some brokers, you can also close deals prior to the expiration time. If, for example, things were going your way but you fear that by the expiration date the conditions aren’t going to be so profitable for you, you can choose to close the deal immediately. Similarly, you can close a deal early so you can minimize your losses. This is a really nice option and even though in some cases you might end up collecting smaller profits because you decided to play it safe, more often than not this option will save you money. Whatever the case, it’s always good to know that you have choice to close the trade at any time.

You can close trades early with In the same manner as with trade extensions, you have until 10 minutes before the expiration time. Note that different brokers might have different conditions (which is why you should always read the terms and conditions before you sign up).

Sign-up Bonus

The inherent nature of the sign-up bonus is pretty self-explanatory, we feel – you get a certain bonus for signing up. That’s it. No strings attached, right? Well, wrong. Very, very wrong. The idea of a sign-up bonus is usually a nice one, but keep in mind that if something seems too good to be true, it probably is. Nobody will just give away money to complete strangers for no reason. Most of these bonuses come with a tonne of different conditions and if you’re not careful, you might end up wasting more money than the bonus was worth simply so you could get it. Some of the conditions are really irritating – upon accepting the bonus, you will be forced to make a certain number of trades and you won’t be able to withdraw your money before that. There is nothing wrong with accepting a bonus in the long run if you have a consistent strategy and you know what you’re doing. However, if you’re new to the field, it may be a better idea keep away from this sort of bargain.

Education Resources

The good news is that, this being the Internet, there are tonnes of information and education resources you can utilize in your quest of making money from binary options trading. All three of the brokers we’ve referenced offer comprehensive materials and video tutorials about the nature of binary trading, as well as the inherent risks involved in this ordeal, and the optimal use of their platforms. Our site also provides lots of user-friendly information. You will be able to easily get a grasp for what binary trading is all about in just a day or two of reading introductory materials. However, bear in mind that it will take a lot more than that to create beneficial strategy and start collecting profits.

Where to Trade

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