The Not -so- Secret Bonus Conditions for Binary Options

What are the bonus terms for trading binary options?
How do they help me?

Common binary option bonus offer

One look at forums that discuss Binary Options, FOREX, or online Gambling and you notice they warn you all about one thing; BONUS.

But what is Bonus? What are they not telling you? Why should you or shouldn't you take one when you deposit in a trading account?

It is safe to say that nothing in life is really free and you should be skeptical about anyone offering you something for nothing, especially when its large sums of money. Often this is how bonus money is portrayed  Just by creating an account with a broker they will match you dollar for dollar what you put in. It doesn't matter if its $500 or $5000 they will match you 100%.

Binary option bonuses are not special.
You can get them whenever you want just ask

But just like anything else there are strings attached. With every dollar of "free money" you are given you are required reach a certain volume of trades.This is called the "Turnover" or "Playthrough"; This amount varies between companies, but you can expect to have a turnover rate anywhere from 20 to 40. 

To figure out your trading volume (i.e. turnover, playthrough) use the following equation 

(BONUS+DEPOSIT)x Turnover. 

Think back to high school algebra class when you said " I am never going to use this again". Well you were wrong. Remember you have to do the math inside the parenthesis first. So for example if you deposited $500 and got a %100 bonus ($500) and the turnover was 40x. It would look like this ($500+$500)40

Simplified $1000x40= $40,000

$40,000 is the amount trade volume you will need to reach before you can withdraw dollar one from you account. This means you need to execute a total number of trades equaling $40,000. For every trade you execute the turnover is reduced.

The less bonus you take the less your
Turnover will be.

For example a trader makes three trades at $100. Win or lose his turnover was reduced by $300. Now I am sure this seems very odd. How are you supposed to be able to trade 40x greater than the amount you started with? Well the answer to that is very simple and its also a great way to manage your money while trading.

If you make TWO trades a day at $100 and you win 7 out of 10 trades (70% win ratio) in 6.6 months you will have a withdraw able balance of $48,800.

As with any investment you need time for it to fully develop  Do not expect that if you have only $500 in you bank account to turn that into $50,000 tomorrow. But if you exercise patience and tactics, in just six months you can have serious returns very easily. Do not however, expect anybody to hand you $500 dollar and day one see 1000% profit day. That is never going to happen. Not from you mom, not from the bank, not even from King Obama.