Factors to Take into Consideration

What is the proper amount to invest and how should this one be influenced by the potential payout?

Well, it depends very much on the type of the option you are trading and on the time horizon you are referring to. If you are buying an option with a long term expiry date that you should consider the fact that until expiration you are stuck with that option. So look not to block a big amount into that option.

Also, if you are trading a binary option that it is based on a specific measured move of a technical analysis patter price made, and you have a specific expiration date, then look to invest more into it and look for the asset to provide as high a potential payout as possible. In conclusion, the most important factors to take into consideration are, and not necessarily in the order of importance:

  • volatility;
  • type of binary option to buy;
  • target;
  • winning/loosing streak;
  • time of the trading day;
  • important news to be expected.

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