Binary option formula 95 payout

Binary Option Payout Rates Explained. October Special Offer: Get started with only €50 at HighLow #1 Ranked regulated broker: Get Started Here! Payout rates in binary options represent a certain percentage of the money invested by a trader on a trading contract. In case traders manage to accurately predict the outcome of an options trading contract, they will receive their initial investment back plus the payout percentage of the initial investment. But how are binary options payout rates calculated? – And more importantly, which are the best payouts in the financial trading business. Likewise, which are the binary options types that offer the larges and best paying payout rates in the financial trading business. In this page we’ll answer all of these questions. In this article you’ll also find out which are the binary options brokers with the best and highest payout rates. Understanding how payouts work in this form of online trading is important in becoming a successful trader. Advanced Tools and Features. Always Read Brokers’ Terms and Conditions. Benefits of Binary Trading.

Complete Guide on Online Trading. Everything about Expiration Times. How are binary options taxed? How do Brokers Make Money. Learn about Assets in Binary Trading. Options Vs. Traditional Trading. Payout Rates – The Ultimate Guide. What are Payout Rates in Binary Options? As explained above, a return rate in binary options is the profit rate promised by the broker to traders. The payout rate always represents a certain percentage of the amount of money traders invested into their trading contract.

In case a trader will correctly predict the outcome of a trading contract, then he or she will receive the initial investment back as well as the promised percentage of the initial investment based on the payout rate. Consider the below example to better understand this: – A broker allows you bet on the fact that Microsoft’s stocks will be either above or below $100 by today 20:00. – The broker promises a payout rate of 80% – The trader decided to predict that the stocks will be above $100 and invests a sum of $100. In case the trader will accurately predict the outcome of the contract mentioned above, then he or she will be rewarded with a total sum of $180. From this sum $100 represents the initial investment and the $80 represents the profit based on the payout rate of 80%. So basically the return rate represents the profit rate promised by the broker to traders on successful trades. The return rate indicates the profit rate a trader could achieve by correctly predicting a trading contract. How are profit percentages calculated? Financial spread betting return percentages are usually established by the broker in advance. The general rule is that the easier an option can be predicted the lower the payout rate will be. On the other hand, the harder the outcome of an option can be predicted, the larger the profit rate is. The average payout rate in the financial trading business is around 85% at this moment. However, this average is expected to become 95% in the near future. As such, we don’t even list brokers on our website that offer payout rates lower than 85%. Anyone offering payouts lower than this is below average. Best Binary Options Return Rates. As hinted above, the average profit rate offered in the financial trading business at this moment is 85%. This means that with trades of $100 traders can in average generate revenues of $180.

However, this rate is expected to become around 95% in the near future. Like explained above, the profit rate of a binary option usually also depends on the difficulty of the option. The movement of commodities is usually easier to predict and as such contracts involving commodities offer lower payouts. Forex pairs are a bit harder to predict and as such, they offer better return percentages. The payout rates of binary options also depend on the type of the binary option. This is because some binary contract types are easier to understand and to predict than others. Here too, easier options have lower winning rates and more difficult contracts have higher return rates. Highlow option return percentages. Highlow contract types are the simplest contracts available. These contracts only require traders to predict if the value of an asset will increase or decrease during a certain time frame. As such, they offer the lowest payout rates in the options trading business. The most common highlow contracts offer payout percentages between 65% and 95%. Highlow options usually never offer payout rates above 100%.

They might pay out less than other types of contracts but they are easier to predict ensuring a higher success ratio. – As such, they are recommended to newcomers. One-touch options payout rates. One-touch contract types are a bit more complicated to predict than highlow options. In this trading type traders will have the task to predict if the value of an asset will reach a certain pre-established value during a certain time frame. One-touch binary option return percentages are usually in the 100%-200% range. As such, they are recommended to intermediate to expert traders. Experienced traders will be able to achieve very high success percentage with one touch-options that in turn will allow them to profit form the high payout rates. Boundary options payout rates. Boundary contracts are the most complicated trading contract types in the business. This is because contracts of this kind will have two strikes.

Traders win or lose depending on the fact if the value of an underlying asset will reach one of the two strike lines during a certain time frame. Due to the fact that these options can be predicted harder than other contract types, they offer very high return ratio. Payout rates of 200% to 500% are not infrequent in the case of range contract types. However, these options are only recommended to expert traders. 60 seconds contracts payout percentages. 60 seconds contracts are simple highlow contracts with expiry times of just 60 seconds. The fact that they are simple highlow contracts ensures that most traders can easily predict them. However, they aren’t as easy as normal highlow options because of their very short expiry time. Because they are a bit more difficult to predict than normal highlow contracts, they offer higher payout rates. Return ratios of 100% to 150% are considered normal when it comes to 60 seconds trading contracts. Binary Options Brokers with the Best Payouts Rates.

If you have read everything above, then by now you’ll know everything about payout rates in binary options trading. Now it’s time to find out everything about the binary options brokers that offer the best payout rates. You should only register at a broker that offers very high Return ratios. Like explained above, the current average payment rates in the financial spread betting business are at around 85%. You should not register at a broker that has payout rates lower than this rate. The binary options brokers with the highest payout rates always offer percentages of at least 85%. Likewise, it’s also important to check if the broker offers high return ratios individually in case of all the different options types. A payout rate of around 85% is above average in case of highlow options. In case of other option types, payout rates of above 100% and 200% are normal. The binary options brokers we’ve listed on this page and overall in all of our pages of our website offer a minimum payment rate of 85%. In order words, they don’t just offer an average payout rate of 85% but instead this is the minimum offered value by them. They of course also offer above average services in all aspects other than the payout rate. Check out these brokers in case you want to register and receive very high return percentages. Also, read our additional educational articles to learn to become a winning trader. Latest Binary Options Articles & Guides.

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The Place to Learn & Trade Binary Options.. Find Updated Reviews about Option Brokers.. and Read them like a Business Card. Find Ratings using our Unique Brokers Formula.. Find News and the Latest Tradng Promotions from Binary Option Brokers. Welcome to Binary Options Home. Welcome to Binary Value. Welcome to BinaryValue. com. The Place to Learn & Trade Binary Options.. Find Updated Reviews about Option Brokers..

and Read them like a Business Card. Find Ratings using our Unique Brokers Formula.. Find News and the Latest Tradng Promotions from Binary Option Brokers. Welcome to BinaryValue. com. The place to review, rate and learn about Binary Option Brokers.. Binary Options Rating Formula v.3.5. The introduction of the Rating Formula v.3.5 is serving an important mission. This mission is to provide a 100% objective framework to evaluate and to rate the world's binary option brokers. Until today, brokerage services were rated by individual users. But most of these user ratings in the trading industry are not honest. Anyone who has an incentive to do so, may produce a fake rating review. Prove comes from the fact that most individual user ratings are given extreme values such is 1010 or 110. It is hard to believe that these extreme ratings have been produced by honest users. This is why the Rating Formula Series was designed in the first place.

By rating brokers in an objective way users are able to choose the brokerage service that suit them best. Furthermore, users are able to identify trading aspects that they weren't aware of and thus enhance their knowledge upon trading. The first and the second versions of the Rating Broker Formula were applied on Online Forex Brokers. The version 3.0 of the formula was applied on Binary Option Brokers. More information here: World Brokers Rating Formula V.3.5. -Implemented on Binary Options Brokers. The rating formula v.3.5 is built by linking together four major trading factors : 2) Min Commissions and Fees Charged. 3) Max Number of Trading Options. 4) Max Technological Efficiency. Maybe someday in the future, world regulatory authorities will use a similar formula to control and to force online brokers to operate in a way favor to their clients. Furthermore, regulators will be able to force online brokers to act in the direction of minimizing the whole systemic risk of the industry. Scam brokers are not just harming traders, but they are also adding an extreme level of systemic risk into the trading industry. The same way that we have wiitness the great financial crisis of 2008 in the US, which eventually became a world crisis. The rating formula is designed to help traders but also to help the system to reduce the incorporated level of systemic risk. That is why we believe that this way of rating brokers sooner or later will become an industry standard.

FACTOR 1) Safety of Funds, Weight 25% When trading online, ensuring the safety of your funds becomes a major issue. Financial companies of all types (investment companies, brokerages etc) tend to accept more risk than they can really afford in order to leverage their profit potential. That is 100% against the interest of their clients who are by nature risk-averse concerning the safety of their funds. In order to measure brokerage credibility a number of rating factors where identified and applied to the rating formula 3.5. Table-1 : Safety of Funds Analysis. 1.1 Headquarters Base, The country where a binary option broker maintains headquarters determines in a certain extend the quality and consistency of its balance sheet. Fees and penalties imposed by supervising authorities provide a strong incentive for Options Brokers to operate legitimately without risking their client funds. That is why the Rating Formula takes in a strong consideration the country of the broker's headquarters. General Offshore = 0.0%, British Virginia Islands = 3.0%, Cyprus = 6.0%, Ireland, Australia = 8%, USA, UK, Germany, France, Switzerland = 10.0% 1.2 Years in the Market, Many years in the market indicate that a Binary Option Company operates under a successful business model and that it is proven capable of managing the whole enterprising risk over time. Binary Options where introduced in 2008, so the Formula weights a maximum rating of 8% on the brokers who were found in 2008. 0-1 Years = 0.0%, 1-3 Years = 4.0%, 3-5 Years = 6.0%, 5+ Years = 8.0% When you are spreading your personal information throughout the internet you must be sure that these important information will stay secure away from fraud. The way a Broker encrypts your information using SSL technology is absolutely important. Platform SSL Encryption 128 bit = 3.0%, 256 bit = 4.0%, No SSL Encryption = 0% 1.4 Customer Service Support Quality. The importance of a good customer service support is obvious.

The quick and the reliable respond of a broker to a trader's demand means money for the trader. Time is money when trading derivatives. Traders and brokers are very far away to its other in a geographical level so it is important that they stay close in an online level. 247 Customer Service = 1.0%, 246 Customer Service = 0.5%, 245 Customer Service = 0%, eMail Support = +1.0%, Phone Support = +1.0%. Live Chat Support = +1.0%, Skype Support = +1.0% The following ratings are made in order to adjust results. Note that in any case the maximum value of Factor-1 rating is 25.0%. As the Binary Options Trading is very young industry born in 2008, regulation is not yet an industry standard. Lately, some Binary Options Brokers have managed to apply for regulation and that is why this factor is also incorporated to our ratings. An extra rating (up to 5%) is added to those Binary Options Brokers who are supervised by a trusty regulatory authority. If a broker is regulated by two or more authorities the rating outcome is the summary of all the individual authority ratings. FSC (BVI) = +1.0%, = +3.0%, CBI = +4.0%, ASIC = +4.0%, BaFIN = +5.0%, FSA (UK) = +5.0%, FINMA = +5.0% The acceptance of US residents indicates compatibility with US regulation, which after 2008 became strict for financial companies. US regulation adds credibility to a Binary Option Broker operation. Yes = +2.0% or No = +0% FACTOR 2) Competition, Weight 40% The level of competition in the Binary Option Industry is very crucial for traders. High payout and refund rate determines in a high extend the success of trading Binary Options online.

Table-2 : Competition Analysis. 2.1 Trading Bonus. The higher the bonus offered by a binary option broker, the larger are the trader’s available funds. Of course you should notice that in order to receive a bonus you must create trading volumes up to 20 times or more the value of the bonus. This factor will maybe be incorporated to future versions. 2.2 Deposit Withdrawal Commissions, Deposit and Withdrawal commissions are progressively reducing trading funds, so the factor 2.2 is incorporated in our ratings. Binary Option Brokers who are not charging any commissions are rated beneficially by 2.0% compared to other brokers who are charging commissions and fees. If a broker provides its clients with one single free withdrawal per month then he receives a rating of 1.0%. Yes = 0 or No = 2.0%, One Free Withdrawal per month = 1.0% 2.3 Highest Payout Rate, The Payout Rate is by far the most important factor when trading binary options. Eventually, factors 2.3 and 2.4 are weighed 30%. The maximum payout rate of each binary options broker is weighed 20%. In order to calculate it we divide the actual payout rate by 10 and after we multiple the result by 2. Forex example for a payout of 85% a broker will earn 17.0% rating. Max Payout Rating = (Max Payout Rate) x 2> 10. 2.4 Average Payout Rate, The Average Payout Rate is reflecting the broker's general ability to compete.

In our ratings we value more the highest payout rate and not the average payout rate. That is because a trader that will open multiple trading accounts will take advantage the highest and not the average payout rate. Average Payout Rating = (Average Payout Rate) 10. The following rating is made in order to adjust results. Note that in any case the maximum value of Payout Factor is 30.0%. The rate of Refund adds extra value to the profit potential of each Binary Option Trader, so factor 2.5 may add up to 5% in the overall rating of any Binary Option Broker. FACTOR 3) Trading Options, Weight 25% Every trader has a different profile with different needs so the quantity and the quality of trading options are highly weighed in our ratings. The number of trading assets offered by the Binary Option Broker is certainly the most crucial factor but other trading options are rated too, like the number of Deposit and Withdrawal methods and the availability of a Demo Account. Table-3 : Trading Options. 3.1 Available Number of Currency Pairs, Forex trading, and especially the EURUSD pair, is very popular among traders nowadays. The higher the number of Forex pairs available, the higher the potential for traders to exploit trading opportunities. The calculation is made simple and fair by dividing the total number of availbale currencies by 100, given a maximum number of 40 currencies which weight a maximum 4.0% in rating value. (Number of Currencies 10) %, max=40 Currencies. 3.2 Available Number of World Stocks. Trading Stocks & Indices is widely used among Binary Option Traders. Especially as concerns shares of companies like Apple, Facebook and Google.

The calculation is made by dividing the total number of availbale shares by 100, given a maximum number of 40 shares which weight a maximum 4.0% in rating value. (Number of Stocks 100) %, max=40 Stocks. 3.3 Available Number of Indices. Trading world indices like Nasdaq and Dax is sometimes the best way to accumualte your trading instict. The calculation is made by dividing the total number of availbale indices by 50, given a maximum number of 20 indices which weight a maximum 4.0% in rating value. (Number of Indices 50) %, max=20 indices. 3.4 Gold & Metal Trading. Trading metals like Gold and Silver is became very popular the last decade. As concerns gold, the existence of gold-based assets in a portfolio reduces the overall risk and constitute a way of differentiating long-term portfolio value. That is why gold trading receives individual rating 2.0%. The availability of more metals receives extra rating of 1% per metal. Gold Trading = 2.0%, any other Metal = +1.0% Oil Trading Available Yes = 1.5%, No = 0% Oil Trading is very popular and receives 1.5% in tems of rating. 3.6 Commodities and Energy, This factor weighs the availability of more commodities than Energy and Metals . This factor receives also a 1.5% rating.

Commodity Trading Available = 1.5%, No = 0% The following factor adjust the results of the asset index . In any case the asset index rating can't exceed 18% in total rating. The reason for this adjustment is to rate brokers that are highly specialized in trading a particular type of assets. For example a binary option broker who is specialized in trading Forex and provides more than 60 pairs will not take only a 4% rating but also a +1.5% rating. If Trading more than 50 assets = +1.5% and if more than 100 assets = +3.0% 3.8 Demo Practice Account Availability. The existence of a practice demo account adds value to the trader that wants to deposit funds for the first time. Time and money may be saved using the demo account before starting a new real trading account. Demo Account Yes = 3.0% or No = 0% 3.9 Deposit Methods, Wide variety of Deposit Methods means a broker is willing to become more suitable to his customers needs. For each deposit method available = 0.5%, max = 4 methods. 3.10 Withdrawal Methods, The wide variety of withdrawing methods is of equal importance. For each deposit method available = 0.5%, max = 4 methods. FACTOR 4) Technology & Innovation, Weight 10% Technological efficiency is very important when trading online.

Table-4 : Technology and Innovation. The most common way to trade binary options. Yes = 2.0% or No = 0% 4.2 One Touch Binary Options. One Touch Binary Options which are also known as boundary options provide traders with the ability to early capitalize their gaining. One-Touch Binary Options earn a payout if an asset reaches a targeted price even before the predefined expiration. Yes = 2.0% or No = 0% 4.3 Rollover Feature Availability. Rollover provides traders the ability to widen their trading time frame. Rollover actually allows a trade expiration to be postponed and therefore constitute an advantage for binary options traders. Yes = 1.5% or No = 0% 4.4 Early Trade Closure. The ability of early closing simple trades is very important. Yes = 1.5% or No = 0% 4.5 Mobile Trading. Mobile trading is not just a trend nowadays, it is simply the future of trading. Every mobile device that is supported means that more traders will able to execute trades anywhere and anytime.

iPhone=1.5%, Android=1.5%, Any other Device = +1.0% (iPad, Windows Mobile, Blackberry) Total Rating: By adding the 4 parts of the rating formula, we get the Total Rating of each Binary Option Broker. Quality and Quantity of Trading Options Offered (25.0%) + The First Ratings using version 3.5. The version 3.5 of the Rating Formula is certainly the most precise and the most complete version of all previous. Binary Value Rating Brokers Formula v.3.0 (2012-2013) Rating Formula Mission. Maybe someday in the near future, world regulatory authorities will use a similar formula to control and to force online brokers to operate in a way favor to their clients. Regulators will be able to force brokers to act in the direction of minimizing the whole systemic risk of the industry. Scam brokers are not just harming traders, but they are also adding an extreme level of systemic risk into the trading industry. The First Ratings using version 3.5. Review Binary Option Signals. Trading World Markets. Using Binary Options you may trade any market on any direction.. The Latest News & Promotions. Find the Latest News and get the Best Promotions.. Binary Options Directory.

Compare Binary Options Pros: Binary Option Reviews. Review Binary Option Brokers like reading their Business Card. Find information about the Company, Trading Terms and Account Information.. Option Broker Ratings. Broker Ratings based on our unique Formula v.3.5 which combines: Safety of Funds, Competition, Trading Options and Technology.. Compare Binary Brokers. Binary Option Reviews. Review Binary Option Brokers and learn all aspects of their trading conditions before opening a new account.. Brokers Directory. Find a list of Options Brokers around the world with their basic information and rating..