I had a conversation with a friend the other day that interested me. He’s a rational trader who started trading binary options in August. It turned out he claimed 100% bonus on the $10,000 deposit and completed the required turnover within 2 weeks with the help of return cash from turnover. I am not a big fan of the bonus structure, but his success do give me some inspirations. If you are aware, deposit bonuses are a common feature of binary options brokers today. The brokers use them as an attraction to get new trader to open and fund accounts and they work. Who wouldn’t want some free money but the question is, how can you make it your own? There are several reasons why you need deposit bonus and how can you employ it to process the withdrawal.
Trade Minimums- Every bonus comes with a trade minimum. Trade minimum is the dollar amount you must reach before the bonus money can be withdrawn from your account. It usually comes with a time limit. Adding bonus can provide sufficient positions for traders to reach the trade minimum. On average the bonus will be between 50% and 100% of the deposit, while trading minimum will be between 50-90 times the bonus. Some brokers offer as low as 40 times and some as high as 100 times the bonus. This means an account with a deposit bonus of $1000 will have to make trades totaling $40,000 before the bonus is yours. Traders needs to specify the bonus and trade minimum before step into any trading. Some bonuses may be bigger than another and the trade minimum varies. Pick the broker with more bonus and lower trade minimum can help you optimize your trading.
Sufficient Positions – Bonuses make withdrawing money from your account difficult. Some brokers, the shadier one, will not let you withdraw any money until you meet the minimum trade limit. Other brokers allow you to withdrawal money with bonus deducted from your account. I do not want to imply that any of you are not able to turn $1,000 into $40,000 but I would like you to consider how can you boost your positions and meet the minimum. My friend told me that to make full use of the offer is a short cut. Except from the $10,000 bonus he got from deposit, he receive another $2000 cashback from the completed trades from his broker. By enlarging your positions you are increasing your chance of reaching the trade minimums.
Hedging Strategy- A benefit of binary options different from other trading is that there are only two options, call or put. When you are uncertain about the market movement, hedging strategy should push you higher at turnover. Take for example, you invest $500 buying call options on gold, when the price goes unfavorably, another $500 or more put options on gold can be purchased to hedge your risk. You may earn or lose a small amount of money, but it ends up completing a considerable trading volume. More trading strategies are up there for you to discover and boost your trading power.
Bonuses are often applied to your account after you contact their customer service and apply for it. In order to opt out you, the trader, are responsible for contacting their account representatives to specify the terms and conditions. Be sure to manage your trading power based on the terms and conditions before accepting them.