Broker’s Edge Calculator
Results:
Important: This tool assumes a 50% chance of winning. Use it to estimate broker’s commission, but remember that actual trading outcomes vary.
The Broker’s Edge Calculator is a quick way to measure the implied commission embedded in a binary options trade by examining the difference between the payout and out-of-money reward. This calculator helps traders make informed decisions by revealing how much of each trade goes to the broker. As a reminder, the result is a simple approximation, assuming an even chance of winning or losing.
Example of How to Use
- Enter Payout Percentage: Input the broker’s payout rate. For instance, 85% if the broker pays 85% of the stake on a win.
- Enter Out-of-Money Reward: If your broker offers a reward for losing trades, enter it here. If none, enter 0.
- Calculate: Click the “Calculate Broker’s Edge” button. The broker’s edge will display below, helping you understand the broker’s “commission” on the trade.