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Is it possible to earn cash from the binaries, and how much can you earn this way? The traders, who begin to engage in the option trading, usually ask such questions. So, to what extent can you rely on income when choosing this trading instrument?
Next I suggest you to watch a video, in which I will briefly and clearly explain everything in detail (7 minutes).
What do you need to do to get an income?
Read, on the example of the Vospari broker (with pictures), how to take the first steps to the stable earnings on the binary trading.
To learn from specialized materials
Of course, if you want to really make money on the binary options, then it’s very important to know how to do it. Sure, you have to study in order to master all the subtleties of this art. Nowadays you can get a large amount of information about the option trading from numerous free and paid courses, which can be found on the Internet. In addition, some brokers, for example 24Option or OptionFair, offer to use specialized trader textbooks and video materials.
It should be noted that most of the information on the Internet is not devoted to the option trading as such, but to the trading on the Forex or the stock market. But if you want to trade exactly with binaries, then it’s advisable to use textbooks that tell exactly about this.
To train on a demo account
Of course, a theory without practice will give you nothing, so it’s better to start practicing right away: find a broker, who has a demo account, choose the strategy and start to use it on the account. If you trade according to a certain strategy, only in this case you have a chance to win consistently. You should remember this from the very first minutes, when you take the first steps to real earnings in the world of binary options.
To try in the battle conditions
This type of trade requires some investment, as in any other field of activity. First of all, invest in your own quality training. This is not necessarily a cash investment, but at least you have to spend your time learning how to trade the options correctly. Do not rush to start the trade itself until you feel sufficiently skillful in this matter and understand any important nuances. As it’s said, what is difficult in training, will become easy in a battle. And the more time you spend on training and the more you devote it to studying the various subtleties of the option trading, the higher the likelihood that you can start making money almost immediately when you enter the market. Well, and do not rush to leave your demo account until you feel really confident that your virtual money earnings become stable for a long time.
Formula for calculating earnings on the options
How much can you REALLY earn on the binary options, for example, in one day? During the week? Per month? This is very interesting for all beginners. Well, let’s answer this sharp question.
Firstly, you get not a fixed salary, but income from each successful deal. Its income is divided into two parameters:
- Profit percentage. As for this type of trade, it’s always high: from 70 to 85%, or even higher.
- Cost per contract. If you buy an option for $10, you can get $7-8.5 of profit in the case of success. If your purchase is an option about $100, then you can expect on profit of $70-85. By the way, there are options such as One Touch, where in case of a successful deal you can double or triple your profit – but the risk is also greatly increased.
Secondly, if the profit is calculated from one deal, it’s important how many deals you make. However, it’s not necessary to buy dozens of contracts every day. You can work on daily and even weekly charts – but each option will bring you a substantial profit.
Thirdly, the size of the profit depends on the size of your deposit. The more deposit you have, the more opportunities. For example, if the deposit is $10, then you should not buy options more expensive than one dollar, otherwise in the case of failure you will immediately lose everything. If you have one hundred dollars, then it’s quite possible to make deals for $5-8, and so on.
Finally (and this is the most important), a big role is played by how many deals you win from the total number of them. To increase this parameter, you need to learn and constantly comprehend something new, as well as practice a lot.
Thus, your profit from trading the binary options depends on your deposit and on how often and at what price you buy options. And also on what percentage of profit you get from them and on your ratio of wins and losses. You can independently and very accurately calculate how much you can earn in the first days and weeks of your binary trading by using this formula. And in the future, with the growth of professionalism, this amount will only increase.