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Binary Options Margin, Risk and Lot size. #462793
10/29/16 08:38
10/29/16 08:38
Joined: Aug 2016
Posts: 95
Wien
T
trenki2 Offline OP
Junior Member
trenki2  Offline OP
Junior Member
T

Joined: Aug 2016
Posts: 95
Wien
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?

Re: Binary Options Margin, Risk and Lot size. [Re: trenki2] #462837
10/31/16 11:19
10/31/16 11:19
Joined: Jul 2000
Posts: 27,986
Frankfurt
jcl Offline

Chief Engineer
jcl  Offline

Chief Engineer

Joined: Jul 2000
Posts: 27,986
Frankfurt
A binary option has no margin or open risk. The "Margin" variable determines your investment.


Moderated by  Petra 

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