Broker’s Edge Calculator

Binary trading is advertised as commission-free trading. Indeed, there is no spread to pay, like there is in Forex, and there is no fee per trade, like there is in stocks. Binary options commission or house advantage resides in the difference between option’s potential return (payout) and option’s out-of-money reward (if any).

You can use the calculator below to find out your broker’s edge on a particular binary trade given the payout amount and the out-of-money reward. It is similar to house edge in a roulette. This edge (commission) calculator assumes that the chance of winning is 50%. Of course, a skillful trader chooses proper entry direction and timing to skew the chances in own favor, but the goal of this free calculator is to allow some estimation and comparison of broker’s commission.

Between 1 and 100.
Between 0 and 100.
Enter 0 if none.
Binary options trading involve risk. Although the risk of executing a binary options open is fixed for each individual trade, it is possible to lose all of the initial investment in a course of several trades or in a single trade if the entire capital is used to place it. It is not recommended to base your investment decisions on any information presented on or originating from BinaryTrading.com. By browsing this website you express your acceptance of the terms of this disclaimer and that BinaryTrading.com cannot be deemed responsible for any losses that may occur as a result of your binary option trading. BinaryTrading.com is not licensed or registered as a financial consultant or adviser. BinaryTrading.com is neither a broker, nor funds manager. The website does not provide any paid services. All content of BinaryTrading.com is presented for educational or entertainment purposes only.
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