Risk Management in Binary Options

When you invest your bitcoins, there is always some sort of risk involved. Binary options, just like any other form of financial trading, is no different. You could lose most of your invested capital, if you are too careless or greedy. The proper model of risk management (sometimes called bank management) is something you are expected to consider as soon as you start your binary options trading experience. We will base our analysis on BitPlutos platform, the very first binary options platform running exclusively on bitcoins.

The widely accepted bank management rule adopted universally by professional binary options traders is that no more than 5% of the account size should be invested in the assets at any given point in time. So, if 2 BTC is your current balance, you should not invest more than 0.1 BTC at any given time. Trading anything more than this is already thought of as “risky”. Losing 50% of your trading capital is different to losing only 5%, isn’t it? This is very important, keep that in mind and you should never go bankrupt when trading binary options with BitPlutos, otherwise you will fall prey to what we all want to avoid when trading

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