Binary Options Margin, Risk and Lot size.

Posted By: trenki2

Binary Options Margin, Risk and Lot size. - 10/29/16 08:38

I backtested the binary options strategy from Binary Options: Scam or Opportunity? and looked at the trade results.

There it shows values for Max open margin and Max open risk like so:
Code:
Max open margin     1800$
Max open risk       279$



Where i have set Capital = 2500 and Margin = 0.01 * Capital => 25. I assume 1 Lot = 1$.

I don't yet fully understand binary options but i thought it would just be a bet on the price rising or falling so if I do only one trade at a time I assumed that the max open risk should be 25 as I only risk 25 per trade?

Also I thought there would be no margin requirement for binary options still Zorro shows it?
Posted By: jcl

Re: Binary Options Margin, Risk and Lot size. - 10/31/16 11:19

A binary option has no margin or open risk. The "Margin" variable determines your investment.
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