Binary Options- Pricing, Payout, Expiration Time, Expiration Rates

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Binary Trading Payout PercentagesBinary options is a method of trading assets within a predetermined time with two specific outcomes, one being a profit and the other a loss.

Binary options pricing is comparable to pricing in traditional trading procedures, particularly where brokers offer you an all or nothing payout opportunity. It is of utmost importance that a binary options platform determines the most accurate pricing in order for the trader to decide what he needs to do in order to yield a profit. To determine the binary option pricing we need to look at various factors that make up the pricing. Below are the influences that a platform takes into consideration to exactly conclude the pricing elements.

  • Current Interest Rate – A factor for managing your risk as a trader. If the interest rate increases in your favor you will be in the money. The importance of taking into consideration what the current interest rate is, is high, as this will influence the rate and pricing payout at the end of the trade.
  • Strike Price – The moment an option is purchased the strike price is determined. The reason we need to factor in strike price when pricing in binary options is to know whether the strike price increased in value (profit) or decreased in value (loss) during the time of the trade.
  • Market Price – This is the current price that the asset can be selected when trading on an open market. The interest of the market price to the trader is whether it will increase or decrease in its value during a certain trade.
  • Time To Maturity – The time that the asset has on the market to reach its “prime” before its expiration. In binary options traders have the choice to determine whether the asset will increase or decrease in its value by the time of maturity, and capable of profiting either way.
  • Return –These is the value of trader’s profits they earn, in a bull or bear market the opportunities lie to yield returns.

A payout in binary options is a predefined percentage which is realized once an asset has reached its expiry time. In binary options this is due to the trader in dollars, whether you have selected a growth or a decline in an assets performance within the market at a specified time of that contract expiring. The payout is known when the option has reached the expiry. The payouts offered by brokers will incentivize you to trade with a specific broker. Personally I would not trade with a broker that offers less than 75% payout per trade.

  • The Expiration Time – This is pre-defined by the platform, but selected by the trader before entering into a trade. Simply put, it is the length of time until the trade is closed.
  • The Expiration Rate – This is the price of the primary asset once the binary option has reached and passed the expiration time. How fast the time ‘runs out’ can be anything from 30 seconds to 1 year, depending on each individual broker’s bids and the selected expiry you decided on for the underlying asset.

All of the above make for a benefiting combination to the trader. The trader must keep each factor in mind as they will work harmoniously and cannot function without each other.


Find The Brokers With The Highest Payout Percentages

Broker Bonus Min Deposit Payout US Traders Review Open Account
GOptions Up to 100% $200.00 Up to 90% Review Visit Broker
24Winner Up to 150% $200.00 Up to 85% Review Visit Broker
OptionBit Up to 100% $250.00 Up to 100% Review Visit Broker
BO 360 Up to 50% $250.00 Up to 80% Review Visit Broker
Opteck Up to 100% $250.00 Up to 100% Review Visit Broker
BOSS Capital Up to 100% $200.00 Up to 85% USA Allowed Review Visit Broker
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Jason B Kruger

Professional Trader at WhyOptions
Jason B. Kruger is a Professional Trader & Chief Editor for, who is considered ‘The Authority’ on Binary Options Trading Strategies, Reviewing Brokers,Providers and their Products.
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Binary Options Trading carries a high degree of risk to your capital. Please ensure you fully understand the risks before you start trading,and if necessary seek independent advice. Whyoptions advises its clients to read carefully the terms and conditions of each broker before opening an account. Copyright © 2014. All Rights Reserved -