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Binary Option Money Management

Invest 1% to 5% from your Capital

This is a best strategy to limit losses. The approach is also simple, making it a good option for beginners. Binary options traders limit the capital they invest in each trade to a percentage of their total account balance, for example, 1%. Experienced traders might go up to 5%, but the proportion is always small.

example: if you have $1,000 in your account and want to open a UP or Down binary contract, you would only invest 1% of your balance, i.e. $10. Similarly, if you took the 5% , your maximum position size would be $50.

Here are the reason to do that

  • You won’t lose all of your trading capital even in case of loss.
  • It eliminates the need for guessing when determining transaction size
  • It reduces greed and fear, allowing you to concentrate on market signals and research
  • The size of your transaction will expand or decrease in proportion to the size of your account

See you all in next Plan..

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