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For a normal binary options trade, this dollar amount gives you your maximum position size. For a Nadex option, also consider your maximum risk on the trade, and then calculate how many contracts you can take to stay within your risk limit. In the beginning, calculate your position size on every trade.

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We are not an official regulated investment adviser, but a website and article publisher whose purpose is to improve the general knowledge about binary options and automated trading. We will not be responsible if our actual information is not accurate or updated. No information on this website is intended to guarantee future results. Binary options investing always involves a risk of losing the invested funds.

The investor should be aware of this before making any investment decision and should only use funds that he is willing to lose.