Payout

Definition

Payout is the share of the trade amount the broker credits on top when your forecast is right. At an 85% payout a $100 winning trade returns $85 in profit, while a loss takes the full $100 — this asymmetry sets the whole math of binary options.

How payout shapes the result

Payout is how much you earn on a win. At an 80% payout a correct forecast returns your stake plus 80% on top, while an incorrect one takes the whole amount. The loss always equals 100% of the trade, and the profit only the payout percent — and this asymmetry is the crux: to stay in profit, simply having "more wins than losses" is not enough.

The platform shows the payout in advance, before you open the trade, and it changes from asset to asset and as the market moves. So payout is not a background detail but the first number to look at: it determines what win rate you even need.

What a win brings

Profit on a $100 winning trade at different payouts:

PayoutProfit on a winLoss on a lossBreak-even win rate
70%+$70−$10058.8%
80%+$80−$10055.6%
85%+$85−$10054.1%
90%+$90−$10052.6%

The right column shows the main consequence: the lower the payout, the higher the share of wins you must hold steadily. Two or three percent of payout shift that bar noticeably — which is why experienced traders pick the asset not only by the signal but by the payout.

Payout in the terminal

In BinoView Supercharts the payout is shown next to the asset and updates when you switch instrument or as the market moves. This lets you choose not "where the signal is" but "where the signal and an acceptable payout are": different assets pay differently, and the difference feeds straight into the result of a series of trades.

How it differs from Risk/Reward

Payout and Risk/Reward describe the same thing from different sides. Payout is how many percent you get on top on a win. Risk/Reward is the ratio of the possible loss to the possible profit: in binary options the risk is fixed (100% of the amount) and the profit equals the payout. At an 85% payout, Risk/Reward is 1 : 0.85. It is one and the same asymmetry: payout looks at it from the profit side, R:R from the ratio side.

Frequently asked questions

What does an 80% payout mean?

That on a win you receive 80% of the trade amount on top of your stake: a $100 trade returns $180 (the $100 staked plus $80 profit). On a loss the whole amount is gone — $100. Profit and loss are asymmetric, which is why being right exactly half the time is not enough to break even.

Why do different assets have different payouts?

The platform sets the payout by asset and current market conditions, based on volatility and liquidity. Calm, liquid pairs usually pay more; exotic ones pay less. The payout does not depend on the expiration you pick, and the current figure is always shown before you open the trade.

What counts as a good payout?

The higher the better — every percent directly lowers the win rate you need. At a 90% payout, breaking even takes about 53% wins; at 70%, nearly 59%. Anything below 70–75% makes most approaches losing by default.

Related terms