Minimum win rate for profit in binary options trading
Minimum win rateWhatever you are an excellent binary options investor. Or as a new investor, you will certainly not be 100% successful trading. So how do we know how many trades we need to win. In order to be able to answer this question, we have calculated to give the minimum win rate for the profit in binary options trading
What is Minimum rate win
Simply the% of the trades you win out of the total number of deals. For example, you make all 10 trades and you win 7 trades i.e. your win rate is 70%.
Minimum rate win to reach a profit?
Normally, if we invest 100 $ and the return is 100%, we must win at least 50% of the transaction. But almost no broker agrees with such a rate. Usually the rate of return is only between 70% and 95%. Then it will need a winning rate of over 50% to make a profit. The higher the investor’s rate of return, the lower the minimum winning rate.
Calculation formula: 100 / (100 + a) (where a is the% rate of return that the broker accepts).
From the above formula, we have the minimum win rate for some of the most common gain rates of brokers:
| Profit rate | Minimum win rate |
| 70% | 58.83% |
| 75% | 57.15% |
| 80% | 55.56% |
| 85% | 54.06% |
| 90% | 52.64% |
| 95% | 51.29% |
Thus, the first goal when engaging in binary options trading is that you need to exceed the minimum odds of winning. Advice for new investors is to choose a low initial investment amount until the investor’s win rate is higher than the minimum win rate, the investment will increase.
In addition, many brokers also allow investors to choose the insurance rate for the investment amount. For example, a pair of profit / insurance ratio is 50/20%, when investing $ 100, the investor who wins will get $ 50, when he loses, he will get $ 20 and lose $ 80.
Then, the calculation formula will change: (100-2b) / (100-2b + a) (where a is the rate of return and b is the rate of insurance).
Investments with insurance:
| Rate of return / insurance rate | Minimum win rate |
| 80/0% | 55.56% |
| 61/8% | 57.94% |
| 57/11% | 57.78% |
| 50/20% | 54.55% |
| 40/35% | 42.86% |
Maybe you are interested:
- The most dangerous times in Binary options to be aware of
- What does the tiger teach us About binary options?
- A 10-minute strategy in Binary Options for beginners
Leave a Reply