# Breakeven binary options. What Does It Mean to Break Even?

Of course, at any given moment, you have to contend with the fact that you may lose a trade.

### Break Even Ratios in Binary Trading

This, in turn, means that you are losing money. Now, this is an inescapable fact and one that you have to come to terms with. The answer is simple — you break even.

This, however, leads to a slightly more complicated question: how to break even with binary options trading. Breaking even with binary options simply means to balance out the winning and losing trades.

Depending on strategies and market conditions, you are going to win a specific number of trades and you are going to lose a certain number.

As you can imagine, the eventual goal is to make a profit. Just as important, however, is to make sure that you are not losing out on any money.

This means that you need to be winning enough trades to cover your losses. Winning more will means that you are making a profit. The breakeven ratio determines how many more trades you will need to win than lose in order to not lose any money.

### Binary Options Breakout Strategy

Calculating the Break Even Ratio There are two variables you need to have at your disposal to be able to calculate the break even ratio. This is the in-the-money percentage — this is what brokers offer breakeven binary options as a payout percentage.

This can range from 65 percent to 80 percent, contingent upon the broker. Then, you will need to know the out-of-money percentage. This again, depends on your broker.

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In most instances, you will lose your entire investment. That is, of course, unless your broker offers a rebate percentage.

Typically, you can expect your out-of-money percentage to stand between 85 and percent. The in-the-money percentage is denoted by I while the out-of-money percentage is denoted by Ot. Calculating Pure Profit Now that you know what it takes to break even, you can breakeven binary options calculate the pure profit that you are making from all of your trades.

Breakout Strategy When the price of an asset touches the level of support or resistance but doesnt break them, we say that the price is testing them. When the price manages to break levels of support or resistance, then we are talking about a breakout. Traders who use the breakout strategy wait for a breakout to occur and enter a position early in the new trend. Once the new trend is formed, the former level of support or resistance depending on where the price broke out becomes the opposite of what it used to be which we call a reversal.

For this, you will need the break even ratio you have calculated above and your winning ratio. Your winning ratio can be determined by dividing the wins from the total number of trades and then multiplying by hundred.

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This will give you your overall profit. Learning how to break even with binary options trading can be a little complex. It is worth it, however, to know just how many trades you need to win to avoid losing money.

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Page Updated: 1 March, Post navigation.