Potential Payout

The potential payout or the estimated return is one constant when trading binary options. The range for it differs from broker to broker and from one asset class to another. There are brokers offering as much as 95% payout for specific assets classes and expiring times, and the low can go even into the 60% area.

It is an important information when somebody decides to trade binary options. Because of the fixed return, so basically the reward is well known in advance, binary options are a financial product that appeals to many traders.

When involved in trading, for example if you are trading the currency markets, then the virtual payout is known in advance as well, in the form of you take profit level, but then comes the psychological factor into equation and sometimes this is vital in deciding to cut a trade or not. Not the same when trading binary options as the time until expiration is known, and the potential payout as well.

It is only normal that the trader involved in binary options should choose the highest potential payout possible. However, this should not be the only variable to take into consideration as binary options even if simple in nature and functionality, should be treated as an individual financial product.

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