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The Martingale strategy in binary options trading originated in 18th century France and involves doubling an investment after each loss, with the aim of recouping past losses and making a profit on future trades Pocket Option Binary Options . In this article, we will show you more about it and talk about why it requires careful consideration due to its potential for significant financial risk.

• The Martingale strategy for binary options involves doubling the investment amount after a loss to recover previous losses and gain a profit.
• Originating in 18th-century France, this strategy was initially used in gambling but has been adapted for financial market trading, particularly binary options.
• Successful application of the Martingale strategy requires a substantial capital reserve to cover potential consecutive losses.
• It’s a high-risk strategy that can be rewarding with the correct predictions, but it doesn’t guarantee profits due to unpredictable market conditions.

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What you will read in this Post

The binary options martingale strategy helps the traders cover their loss trails with more profits . It is all about doubling up the investment amount consistently in a certain amount of trades Pocket Option Fibonacci . The thought process behind this amazing strategy is to increase the possibility of getting high payouts.

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Binary options trading is just as risky as the gambling tables. And losing one trade with a big investment might hit the pocket hard. Therefore, one needs to play with the risk and gamble with the investment tactics of binary options to recover all of the losses. But on one condition, i.e., you must have spare funds to do the same.

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A guide to the origins of the Martingale strategy and how to implement it

Trading binary options is one of the simplest forms of trading. In fact, all you have to do is predict one of two possible price movements. You have to bet on either a rise or a fall in the price of an asset. But to make it even easier for you, there is a Martingale strategy suggested by the investors.

The Martingale strategy is more of a betting trick that is specifically designed for binary options. The origin of this strategy took place in the 18th century and was put into action by Pierre Levy. The binary options martingale strategy was previously used for common gambling bets in the country of France. In fact, the principle of this strategy is quite simple and easy to implement.

This strategy is used as a doubling-down strategy. According to the creator of this strategy, you can recover any money lost in previous trades or bets. In addition, this strategy allows traders to place their bets in the same direction by doubling or multiplying the size of the investment. The increase in payouts will usually help to recoup past losses.

This strategy was used at the gambling tables, but now it is also used in financial market trading. Its maximum use is observed in binary options trading. This guide will give you a complete elaboration on how the binary options martingale strategy actually works.

How to trade Binary Options with Martingale Strategy?

Binary options martingale strategy is not a complex idea for implementation. But the beginners or the rookies need to get an overview of the steps. In fact, they need to follow these steps in order to implement the strategy effectively.

The steps for the same are:

1. First, deposit a certain amount of capital into your broker account. Remember that the deposit amount is not the amount that you have to trade completely. So, keep your broker account filled with a good amount of capital for the implementation of this strategy. For instance, prefer depositing $2000 at first.
2. Now, decide the investment amount that you are willing to place on your first trade. If you have deposited $2000, then keep your first investment at $50-$100.
3. For the top brokers, the maximum payout based upon different assets ranges up to 100%. Quotex.io, IQ Option, and Pocket Option are some broker platforms with high payout assets. For this example, let’s assume the average payout to be 80%.
4. Now, place the first trade and wait for the result. If you invested $100 with an 80% payout and won the trade, then you have $2080 in your account.
5. In the next trade, you again invest $100, as you won the previous trade, so there is no need to implement the doubling strategy. But this time, assume that you lose the trade. So, you will lose $100, and your current broker account balance will be $1980.
6. Count on another trade with a $200 investment, and assume that you lost it again. Now, the amount will be $1780 in your broker account.
7. Do not hesitate and increase the investment to $500. And let’s assume you win the trade with a $400 payout of 80%. So, the present amount in your broker account will be $2100. Hence, you recovered the losses that you made previously.

In this way, the entire binary options martingale strategy is being imposed on this trading format. It is important for you to get an idea of choosing the right broker platform to ensure more initial bonus rewards to try out this strategy with ease.

Top brokers to commence with Binary Options Martingale Strategy

There are many top brokers available across the globe. But you need to go along with the ones that are offering good payout and advice about martingale strategy. Here are the three brokers who are ideally perfect to be your companion for binary options trading with this strategy:

#1 Quotex.io

Quotex.io is a new and modern-day binary options trading platform. It doesn’t have any mobile application but is well accessible from the web interface. The maximum payout for Quotex.io is up to 100% for varying assets. Furthermore, the payout varies depending upon the liquidity and market performance concerns of the assets.

Apart from that, Quotex.io also offers a substantial deposit bonus that will help motivate the traders to adopt the martingale strategy at ease. The first few trades can be made without any hassle of investing the real funds. The first losses will not be from your pocket, but it is the moment to use the strategy for increasing the payouts and returns.

(Risk warning: You capital can be at risk)

#2 IQ Option

IQ Option is yet another popular binary options trading platform that has the potential to help both beginners and professionals trade easily. It has a plethora of financial instruments to trade with and has a separate calculator over the IQ option website to help you with martingale trading predictions.

It is just one of the several indicators available over the IQ Option platform. Most of the indicators will also help you determine the trend set to reverse or continue with a particular trade. In addition to that, it gives you a maximum payout of up to 95%, which can help you with great returns.

(Risk warning: You capital can be at risk)

#3 Pocket Option

The Pocket Option platform comes with a prominent bonus feature. You get a 50% bonus with every deposit of $50 over the platform. Hence, it gives an opportunity for all the traders to deposit big and earn big bonuses for easy investment through martingale strategy.

The maximum payout for the Pocket Option platform is up to 92%, which is pretty much outstanding. In addition to that, it has tools to help you predict your trading aspects and calculate the martingale strategy for your investment routine.

(Risk warning: You capital can be at risk)

Important considerations for Binary Options Martingale Strategy

Before you start adopting the binary options martingale strategy, you need to get acquainted with some of the considerations. Yes, you have your broker now, but what’s important is to learn almost everything about a strategy before implementing it. So, here are the considerations for the same:

• The market conditions are not always perfect, for which this strategy doesn’t guarantee you any doubled-up trading returns. You cannot assume to end up always with profits. Hence, this is the verdict that makes it one of the riskiest strategies to impose. It is mostly for the rich!
• If you intend to implement this strategy, then you should have the ideology of assessing the right reward to risk ratio to determine the strategy safety for particular trades.
• For executing a martingale strategy, you will need some sort of access to a larger capital pool. As stated above, it is the strategy for the rich. The trader should be ready to make bank transfers if the consecutive doubled-up trade results in a loss.
• Make sure you always prefer to use predictable financial assets. It means that you should pick the financial instruments, the price movement of which you think is predictable. Moreover, if you can analyze the pattern of their price fluctuations throughout a time span, you can better use this strategy.
• You need to combine this martingale strategy with the trend line trading. With this, you will probably enhance the predictability of the binary options martingale strategy trading options.
• If possible, keep track of how much capital you are ready to invest in a day on binary options martingale trading. It will help you limit your losses and leverage profits. You need to keep in mind that you should monitor the funds that are deposited and invested. Also, keep track of profits earned and funds lost. Your broker platform will give you the history, but your manual analysis is important.

Conclusion – Use the Martingale strategy for a better result

In conclusion, if you are new to binary options trading and are ready to implement the martingale strategy to your actions, you need to count on the above details. If you approach this strategy blindly, then you might end up losing your money more than before. The fact of the matter is that this strategy is super risky, but equally rewarding if you take your chances on predictable assets.

So buckle up, get yourself an ideal broker platform and start your binary options trading journey with this innovative strategy.

(Risk warning: You capital can be at risk)