Payouts or returns, are simply the sum of money that Broker traders earn with each trade that finishes in the money. The total earnings for each successful trade can be arrived at by using the profit percentage that was offered, along with the investment amount that you decided upon. Of course you can also opt to simply view your banking page to see the total earnings (or loss) for each trade.
If payouts are so simple, why do some digital options traders find them confusing? This is likely because different trades carry different payout rates. Rates can be higher or lower, but the exact rate for each Broker trade will always be posted upfront and made known to you in advance. This information will allow you to make informed decisions about trade selection, money management, and more.
Profit Payout Example
Let’s assume that you have made the decision to enter into a Broker trade that is offering an 80% return should your price movement prediction be correct. Now let’s assume that you have decided upon an investment amount of $100. Should this trade finish in the money, you account will be credited in the amount of $180. $100 will be the return of your investment, with the $80 being the profit amount. Should the trade not go your way, the loss amount is limited to the $100 investment sum.
Payouts and Money Management
Do keep your money management plan in mind when making investment decisions. Just because a large payout rate is being offered does not mean that you need to invest more. Slow and steady seems to be the approach taken by most highly successful digital options traders. You absolutely can reach your profit goals even when using smaller investment amounts. Broker is always going to provide you with attractive payout rates. It will be your task, however, to ensure that you complete the research necessary to trade well on a consistent basis.