Binary options investment amount is the money that you trade on assets over broker platforms. It is not the minimum deposit amount that you make on the broker platforms. Instead, it is the amount that you trade. Both are different from one another.
The broker platform asks for the minimum deposit amount from you to complete the sign-up process. The trade amount is what you place on a specific asset for high/low, inbound/outbound, and other such binary options trades.
Most of the binary options brokers are allowing the traders to trade with a minimum of $1. It is because currently, many beginners are turning up to this trading format. And the brokers are willing to make the platform co-operative for the beginners to earn profits as well.
Therefore, a low minimum trading investment amount will help them minimize the loss of their risks. They can trade big whenever they feel confident!
Guidance on Binary Options Investment Amount
It is advised that binary options investment amount should always be 10-20% of the total amount deposited over the broker account. It is to ensure that you don’t lose all of your money in just one trade. You should have money to revive your losses and neutralize them by converting next trades into profits.
So, prefer to keep your initial investments low until you are super confident about the price hike or drop for an asset. The profit payout percentage is calculated only for the invested amount. It means that if you have invested 10$, and the profit payout is 80%, then you will get $8 as profit on a successful trade.