High-yield binary options: what minimum deposit should you have?
This term is used to describe the amount that you pay into an account to start trading. Brokers offer different minimum deposits, and you can start just with $200. But does an investor really need a minimum deposit?
When you trade, you undoubtedly want to make a decent profit, especially if return amounts to 70-80%. In order to get a higher yield, you have to invest more but in this case you don’t need a minimum deposit.
As far as I know, the largest well-known and reliable brokers do not set low requirements to a minimum deposit. Generally, decent brokers have an average minimum deposit of $200 to $250 and a minimum trade of $25.
A Thought-out Capital Allocation
Popular binary options with a minimum deposit of $250 have a minimum price of $25. This amounts to 10% of deposit, this is a good ratio. Generally, experienced investors don’t recommend investing too much because there is always risk of losing money. The optimum ratio is if a trader buys an option at a price not exceeding 5% of his deposit.
Experienced traders don’t recommend trading with a minimum deposit of just $25. They advise a thought-out approach and ensure that you have a good hedge against risk, for instance, a deposit of $1000-3000.
A Serious Approach is a Guarantee of Deposit Growth
Before considering binary options with a minimum deposit as your investment of choice, you need to understand a common mistake in trading. The matter is that minimum investment trades are regarded not as trial or test but easy.
Undoubtedly, this is an attractive option for the traders who don’t have experience in trading. For instance, their forecast of some stock behavior is wrong; an investor loses a little money which he doesn’t care. This makes a mental trap, and a trader doesn’t learn how to earn on binary options but how to lose money without regrets.
In this case, the trader doesn’t care much because if he loses little, he gets relaxed. On the other hand, if an investor has a deposit of $3,000, he cares not to lose money. This investor tends to make his investments as safest as possible and as result he focuses on the comprehensive analysis of the market required for successful trading.
Just imagine that you prepare for a $25 and $700 deal? See the difference?
If you are novice, certainly, minimum trades are the best choice for you. When you make a deal, imagine that you make not a $25, but a $700 deal. In this case you surely carry out an additional analysis, check yourself and hence increase your chances for success several times.