Binary trade size: how much should you put on one trade?

The formulas

• Risk % = trade amount ÷ current balance × 100
• Profit if you win = trade amount × payout %
• Loss if you lose = the whole trade amount
• Amount to recover a loss = (loss × (1 + extra %)) ÷ payout %

A worked example

Balance 10,000, trade amount 500, payout 80%. Risk is 500 ÷ 10,000 = 5%. A win earns 400 and makes your balance 10,400. A loss costs 500 and leaves 9,500. To recover a 500 loss with 10% extra at 80% payout you would need a trade of about 688, which is already 7% of your balance. This is why recovery trades need a cap.

Try it before you trade: the What-If calculator

Enter your balance, the amount and the payout. RiskQuo shows the profit or loss, your new balance and whether the risk is low, medium or high. It is a simulation only: nothing is saved and no free analysis is used.

Frequently asked questions

Related guides and calculators

• Binary options risk management: a beginner’s guide
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