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When trading in the options market, you can remember the 5% rule. This rule says that each trader should only trade a small amount of what they have in their bank account. This way, you can trade safely without putting your financial situation at risk.
What amount can a trader risk on each trade?
The amount should not be more than 1%. For example, if you are trading using $100, you can risk between $1 to $2. Risking more than 5% will only bring loss.
Conclusion
Trading in the binary options market is not a form of investment but betting on a moving market. That’s why you should analyze the market and fix an amount before trading.
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