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If, for example, you have ?1,000 in your trading account, the optimum amount of money you should invest in any single binary options contract is ?50.

While this may seem disappointingly small to ambitious new traders, it means you would have to lose 20 times in a row to wipe out your entire trading account. Other money management strategies There are a number of other techniques that binary options traders employ to limit their losses to a manageable level, depending on whether they have a high, medium or low appetite for risk.