Withdrawal or Allocate More Capital?

Withdrawal or Allocate More Capital?

Submitted by adil on Tue, 05/13/2014 - 07:43

When a trader earns a considerable amount of profit with binary options trading, he has to make an important decision about whether to withdraw his earnings or to reinvest them. But fortunately, it’s not such a hard decision for them to make because there is a minimum withdrawal limit set by the brokers for withdrawal of capital and so, investors can take all of their profits out of the accounts as long as they keep the minimum required amount.

In the binary options market, investors continually need money for investment to generate more money out of it. It will not be wise for a long term investor to withdraw all the accumulated earnings from his account. Therefore, the question here is how much money an investor should keep in his account for trading in the future. There is no rule to maintain a certain amount of deposit in a binary options account because the trade volume and the amount of money invested by the investors vary from one investor to another. It is essential to keep track of your performance and progress as it can provide a reasonable estimate about the amount of cash required that needs to be maintained in the trading account.

However, traders and investors should always keep the minimum deposit requirement in mind. Every broker has a different requirement of maintaining a minimum capital. It can range from $1 to $5 or can also be much higher than that. So, being an investor, when you are planning to withdraw cash from your binary options account, keep the minimum deposit limit in mind because it is possible that the amount that you currently hold in your account is almost the same as a minimum withdrawal requirement. In that case, you should wait until you make enough money that exceeds well above the required limit.

There are many brokers who do not maintain any minimum withdrawal limit. But where a broker has to handle periodic withdrawals by investors, a withdrawal fee is charged by the brokers in order to manage the withdrawals. Make sure that this fee is considered to be included in a capital management plan and also appears in the monthly tracking numbers.

Even if you plan to take all your funds out, you can continue trading any time in the future by re-depositing a certain sum of money. Investors usually want to deposit the money only once and then wish to generate enough capital with the deposited cash that they don’t have to add more money in the future. But it is not possible to do so in reality, because the more experience you gain as a trader, more deposits are required to be made. However, the frequency of these deposits reduces with the passage of time.

It is crucial to control the withdrawal of capital from your binary options account. Therefore, you should manage these withdrawals and monitor the activity on a regular basis so as to generate enough profits from your deposits. It is important to devise a trading strategy or to have a well designed plan so that a specific amount that is required for future trading is always kept in the account. If a plan is executed properly, you may never have to redeposit more cash in the future.