Binary Options Martingale Strategy

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Written By
Contributor Image
Written By
William Berg
William contributes to several investment websites, leveraging his experience as a consultant for IPOs in the Nordic market and background providing localization for forex trading software. William has worked as a writer and fact-checker for a long row of financial publications.
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Edited By
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Edited By
Tobias Robinson
Tobias is a partner at DayTrading.com, director of a UK limited company and active trader. He has over 25 years of experience in the financial industry and contributed via CySec to the regulatory response to digital options and CFD trading in Europe. Toby’s expertise and dedication to financial education make him a trusted voice in the industry, including a BBC investigation into digital options.
Updated

The binary options Martingale strategy is an example of a doubled-up, outcome-based concept used by many traders today. This guide will cover what the binary options Martingale strategy is, the odds of winning with the system, how it works in practice using step-by-step examples, and more.

Top Binary Options Brokers

Click a broker for details
  1. 1
    Pocket Option
    50% Deposit Bonus

    Ratings
    2 / 5
    3.5 / 5
    2.5 / 5
    3.5 / 5
    3.3 / 5
    3.3 / 5
    3 / 5
    3.5 / 5
    4 / 5
    4.2 / 5

    $50
    $1
    MISA
    Binary Options, Currencies, Commodities, Stocks, Indices, Cryptos
    Web, MT4, MT5
    Wire Transfer, Credit Card, Bitcoin Payments, Volet, Perfect Money, Visa, Mastercard, Debit Card, WebMoney, FasaPay, Ethereum Payments, Maestro, JetonCash
    USD
  2. 2
    IQCent
    20% to 200% Deposit Bonus

    Ratings
    2.5 / 5
    3.3 / 5
    2.4 / 5
    4.3 / 5
    3.8 / 5
    2.5 / 5
    3 / 5
    2 / 5
    4.3 / 5
    4.1 / 5

    $250
    $0.01
    1:500
    IFMRRC
    Binary Options, CFDs, Forex, Indices, Commodities, Crypto
    Online Platform, TradingView
    Credit Card, Debit Card, Wire Transfer, Bitcoin Payments, Ethereum Payments, Visa, Mastercard
    USD, EUR
  3. 3
    CloseOption
    $10 Welcome Gift

    $5
    $1
    National Bank of Georgia
    Binary Options on Forex & Cryptos
    Own
    PayPal, WebMoney, Mastercard, Perfect Money, Wire Transfer, Bitcoin Payments, Ethereum Payments
    USD
  4. 4
    Videforex
    20% to 200% Deposit Bonus

    $250
    $0.01
    1:500
    Binary Options, CFDs, Forex, Indices, Commodities, Crypto
    TradingView
    Skrill, Perfect Money, Bitcoin Payments, Neteller, Credit Card, Visa, Mastercard, Ethereum Payments
    USD, EUR, GBP, AUD, RUB
  5. 5
    Binarium

    $5
    $1
    Forex, Stocks, Cryptos
    Own
    QIWI, Yandex Money, Bitcoin Payments, Neteller, WebMoney, Wire Transfer, Visa, Mastercard, Credit Card, Debit Card
    USD, EUR, AUD, RUB
  6. 6
    RaceOption
    20% - 200% Deposit Bonus

    $250
    $0.01
    1:500
    Binary Options, CFDs
    TradingView
    Credit Card, Debit Card, Bitcoin Payments, Neteller, Skrill, Perfect Money, Mastercard, Visa, Ethereum Payments
    USD, EUR, GBP, AUD, RUB
  7. 7
    BinaryCent
    20% - 200% deposit bonus

    $250
    $0.01
    1:500
    VFSC
    CFDs, Forex, Stocks, Cryptos, Options, Commodities
    Own
    Visa, Mastercard, Debit Card, Credit Card, Skrill, WebMoney, Neteller, Bitcoin Payments, Wire Transfer, Perfect Money, Ethereum Payments
    USD
  8. 8
    World Forex
    100% Deposit Bonus

    $1
    0.01 Lots
    1:1000
    SVGFSA
    Forex, CFD Stocks, Metals, Energies, Cryptos, Digital Contracts
    MT4, MT5
    Wire Transfer, Debit Card, Credit Card, Visa, Mastercard, Google Wallet, Apple Pay, Perfect Money, Bitcoin Payments, Volet
    USD, EUR, RUB

Here is a short summary of why we think each broker belongs in this top list:

  1. Pocket Option - Pocket Option offers ultra-short-term binaries from 5 seconds on one of the simplest web platforms for beginners. Payouts rival alternatives at 90%+ while the ‘Double Up’ and ‘Rollover’ features provide further opportunities to profit. Considering the negatives, the suite of 130+ assets trails binary brokers like Quotex, which offer 400+.
  2. IQCent - IQCent offers binary options with above-average payouts up to 98%. The broker supports an online platform with basic analysis tools but a wide range of timeframes, from 1 minute to 1 month, catering to short and long term trading strategies. Considering the negatives, there are no binaries on stocks.
  3. CloseOption - CloseOption offers binary options trading on 30+ fiat and digital currencies through an easy-to-use web-based platform. 15 contract timeframes are available from 30 seconds to 1 month, suiting both short-term and long-term traders. New users also get a joining gift.
  4. Videforex - Videforex continues to offer binary options with 20% payouts on crypto and up to 98% on less volatile assets, beating many competitors. A wide range of contract lengths are also supported from 5 seconds up to 1 month. New users will appreciate the welcome deposit bonus.
  5. Binarium - Binarium is an experienced binary options broker offering access to a range of financial markets with a proprietary, sleek platform. New users can claim a welcome bonus up to $1,500 or practice in the demo account with $10,000.
  6. RaceOption - RaceOption offers 100+ binaries with decent payouts up to 95% and ultra-fast expiries from 5 seconds. With a $250 minimum deposit, clients can enjoy free deposits, fast withdrawals and a range of trading bonuses.
  7. BinaryCent - BinaryCent provides binary options trading on a range of markets through a slick proprietary platform. Traders can invest as little as $0.10 per trade and earn payouts up to 95%, and these are excellent terms that accommodate casual and low-capital traders while allowing profit opportunities.
  8. World Forex - World Forex offers binary options where you simply decide the stake, price direction and contract timeframe. The payouts are high at up to 100% on American contracts and 85% on European, which also offers a partial refund to traders who close contracts before expiry.

Pocket Option

"Pocket Option excels for its easy-to-use web platform which provides a best-in-class user experience for short-term binary traders. The $50 minimum deposit is also accessible for beginners while opening an account is really easy. Looking at the negatives, Pocket Option still trails alternatives in its market offering and regulatory credentials."

Rebecca Holden, Reviewer

Pocket Option Quick Facts

Bonus Offer50% Deposit Bonus
Minimum Deposit$50
Payout %92%
Expiry Times5 seconds - 4 hours
Copy TradingYes
PlatformsWeb, MT4, MT5
InstrumentsBinary Options, Currencies, Commodities, Stocks, Indices, Cryptos
Account CurrenciesUSD

Pros

  • The range of payment methods beats the majority of rivals, providing fast, secure and convenient deposits for traders in most countries
  • The MetaTrader platforms offer integrated analysis with helpful technical summaries for short-term traders
  • Well-funded traders who deposit $1000+ can qualify for a 2%+ payout boost, more tradable assets and exclusive perks

Cons

  • The MISA is a weak regulator with limited investor protection for retail traders
  • Despite offering competitive payouts up to 92%, binary brokers like IQCent offer higher returns up to 98% based on tests
  • The maximum binary contract length of 4 hours is restrictive for longer-term trading strategies. Alternatives like Videforex offer binaries up to 1 month

IQCent

"IQCent will appeal to day traders looking for a straightforward binary options and CFD trading platform with low fees, a range of accounts, and copy trading. Getting started takes less than 1 minute and a $250 deposit. "

Rebecca Holden, Reviewer

IQCent Quick Facts

Bonus Offer20% to 200% Deposit Bonus
Minimum Deposit$250
Payout %98%
Expiry Times5 seconds - 1 month
Copy TradingYes
PlatformsOnline Platform, TradingView
InstrumentsBinary Options, CFDs, Forex, Indices, Commodities, Crypto
Account CurrenciesUSD, EUR

Pros

  • The broker's 24/7 customer support is fast and reliable, responding within 1 minute during tests
  • The broker offers up to 98% payouts on binary options, which is more than alternatives like Pocket Option, only offering up to 92%
  • IQCent is one of the few binary options brokers that also offers a copy trading service for hands-off traders

Cons

  • The market analysis is very basic with limited technical summaries and insights from analysts
  • IQCent trails binary brokers like Quotex with its narrow investment offering of around 100 assets with no stocks
  • The broker is not overseen by a respected regulator, though this is common among binary options firms

CloseOption

"CloseOption is a good pick for traders seeking a user-friendly binary options platform with high payouts and joining bonuses."

Tobias Robinson, Reviewer

CloseOption Quick Facts

Bonus Offer$10 Welcome Gift
Minimum Deposit$5
Payout %95%
Expiry Times30 seconds - 1 month
Copy TradingNo
PlatformsOwn
InstrumentsBinary Options on Forex & Cryptos
Account CurrenciesUSD

Pros

  • The user-friendly platform is compatible with most web browsers
  • Free demo account
  • CloseOption offers weekly trading tournaments with cash prizes

Cons

  • CloseOption is not regulated by a well-regarded trading authority
  • Clients need to deposit $50,000+ to qualify for the best payouts
  • Binary options are only available on fiat and digital currencies

Videforex

"Newer traders will find a lot to enjoy about trading binary options on Videforex's easy-to-use proprietary platform, as well as the broker's copy trading solution. Payouts also remain higher than most alternatives climbing to 98%."

William Berg, Reviewer

Videforex Quick Facts

Bonus Offer20% to 200% Deposit Bonus
Minimum Deposit$250
Payout %98%
Expiry Times5 seconds - 1 month
Copy TradingYes
PlatformsTradingView
InstrumentsBinary Options, CFDs, Forex, Indices, Commodities, Crypto
Account CurrenciesUSD, EUR, GBP, AUD, RUB

Pros

  • Videforex regularly runs trading contests, offering great practice opportunities and cash prizes to beginners and experienced traders
  • The support times are fast and reliable based on tests - few brokers offer 24/7 multi-lingual video support
  • Traders can earn up to 98% payouts on 100+ assets with the broker’s binary options, which is in line with competing brands like IQCent

Cons

  • The broker isn’t overseen by a trusted regulatory agency
  • No MetaTrader 4 integration
  • US clients aren’t accepted due to legal restrictions

Binarium

"Binarium is a good binary options broker for traders looking for an experienced brand with low deposit requirements and a welcome bonus."

William Berg, Reviewer

Binarium Quick Facts

Minimum Deposit$5
Payout %80
Copy TradingNo
PlatformsOwn
InstrumentsForex, Stocks, Cryptos
Account CurrenciesUSD, EUR, AUD, RUB

Pros

  • Enhanced educational features
  • Promotions including 100% welcome bonus and trading tournaments
  • Community forum platform

Cons

  • Unregulated
  • No industry established trading terminals
  • Lower payouts than other binary options brokers

RaceOption

"RaceOption will appeal to traders new to binary options looking for copy trading, contests and 24/7 customer support. Experienced traders will also appreciate the account-based perks and bonuses."

William Berg, Reviewer

RaceOption Quick Facts

Bonus Offer20% - 200% Deposit Bonus
Minimum Deposit$250
Payout %95%
Expiry Times5 seconds - 30 days
Copy TradingYes
PlatformsTradingView
InstrumentsBinary Options, CFDs
Account CurrenciesUSD, EUR, GBP, AUD, RUB

Pros

  • Flexible weekend trading available plus 24/7 multilingual customer support
  • Well-optimised proprietary mobile trading app with instant execution, full trading history and responsive live charts
  • Sign-up bonuses from 20%, plus weekly trading contests and prize giveaways

Cons

  • Unregulated broker with lower safety score
  • Limited educational resources
  • $250 minimum deposit is higher than other binary options brokers

BinaryCent

"Traders who want a reliable binary options broker with a streamlined platform and high payouts should try out BinaryCent."

Tobias Robinson, Reviewer

BinaryCent Quick Facts

Bonus Offer20% - 200% deposit bonus
Minimum Deposit$250
Payout %95%
Expiry Times5 seconds - 30 days
Copy TradingYes
PlatformsOwn
InstrumentsCFDs, Forex, Stocks, Cryptos, Options, Commodities
Account CurrenciesUSD

Pros

  • Simple and straightforward proprietary platform for binary options trading
  • Payouts up to 95% are higher than most competitors and increases profit potential
  • Copy trading and binary options bots are useful for beginner traders

Cons

  • The $250 minimum deposit is higher than most binary options brokers
  • Not available to traders based in the US
  • Not overseen by any reputable regulator, raising risks and reducing customer protections

World Forex

"World Forex provides both highly leveraged CFDs and digital contracts, making this a good broker for clients who want flexible and rewarding ways to trade. The copy trading service will also appeal to newer traders."

Tobias Robinson, Reviewer

World Forex Quick Facts

Bonus Offer100% Deposit Bonus
Minimum Deposit$1
Payout %100%
Expiry Times1 minute - 7 days
Copy TradingYes
PlatformsMT4, MT5
InstrumentsForex, CFD Stocks, Metals, Energies, Cryptos, Digital Contracts
Account CurrenciesUSD, EUR, RUB

Pros

  • Copy trading solution
  • Swap-free account available
  • Demo account

Cons

  • Withdrawal fees apply
  • No negative balance protection
  • Weak regulation

Binary Options Martingale Trading Strategy Explained

How Does It Work?

The binary options Martingale strategy involves doubling a trade size each time a loss is incurred. Simply explained, investors should double the value of an investment until a win is achieved.

The approach is often likened to gambling in a casino with the hopes of breaking even. In theory, by continually doubling the stake when a loss occurs, a win will eventually occur, so long as you can go the distance.

This system is reliant on a healthy available balance and many binary options traders cannot afford to keep amplifying capital stakes.

Example

Let us consider a simple example to help understand the concept…

Suppose an investor has $100 to invest in binaries and there are two outcomes: A and B. The investor stakes the full $100 on outcome A occurring. However, at the end of the contract, outcome B actually happened, so the trade is lost.

Using the binary options Martingale strategy, the investor would then x2 the trade size and speculate on outcome A occurring again, this time with a $200 investment. Once again, if outcome B occurs, the $200 stake is lost. This process of doubling the trade size would continue until a correct investment is made.

Remember, the size of the winning trade will continue to grow with the size of the investment, so in the best-case scenario, the win would exceed all combined losses of the previous trades.

Let us say the investor wins trade three (a $400 stake). Using this simple example, the investor would achieve a $20 profit, assuming an 80% payout (($400*0.8)-$200-$100)).

Of course, when it comes to binary options trading, there are a few more factors to consider, such as variable payout percentages and brokerage trading fees.

History

The Martingale trading idea originated many years ago, following an introduction by French mathematician Paul Pierre Levy in the 18th century. The concept really caught on within the casino era, when John H. Martingale actively encouraged customers to increase their bets after experiencing losses.

One of the most famous stories involving the Martingale approach is the ‘man who broke the bank at Monte Carlo’. In 1891, Charles Wells successfully implemented the concept. He started playing in the casino with 4,000 francs and made a whopping 1 million francs!

It is worth noting that these kinds of returns are rare and no profits are guaranteed when trading binary options using the Martingale strategy.

Step-By-Step Guide To Trading Binary Options With The Martingale Strategy

  1. Open an account with an established binary options broker such as Quotex, Pocket Option or IQ Option and download the relevant trading terminal. Consider payout percentages when deciding between platforms as these can vary significantly. Make a deposit to your live profile, for example, $1,000.
  2. Decide the investment amount you would like to make for your first trade. Remember, this cannot be your full account balance. Perhaps start with no more than a $50 investment.
  3. Place your first binary options trade. Wait for the contract to expire.
  4. If the trade was successful, you would receive $40 profit (assuming a broker with an 80% payout, $50 x 80%) and your new account balance would be $1,040. If the trade was not successful, you will lose the $50 investment and your new account balance would be $950. Following the Martingale binary options strategy, your next investment value would be $100.
  5. Say you lost this trade too, it is time to increase your next investment amount to $200. Let us assume you win this trade with an 80% payout, meaning a profit of $160.
  6. Considering the previous losses of $50 and $100 your new account balance with the latest profit of $160 would be $1010, meaning a $10 overall profit.
Binary Options Martingale Strategy Doubled-Up Example
Martingale Strategy Used Until A Profit Is Made ($50, Followed By $100)

Pros Of The Binary Options Martingale Strategy

Cons Of The Binary Options Martingale Strategy

Comparison With Other Binary Options Strategies

A quick Google search can show that the binary options Martingale strategy is not the only plan out there. We list some of the top alternatives below so you can decide which is best for your winner’s trading plan and see how they differ.

The Straddle Strategy

Straddle positions are opened before significant company news or press releases. The anticipation is that the price of the associated asset will increase immediately after the announcement if it is a positive or success story and then drop again back to a stable price after a period.

Investors use these swings to profit, whichever the direction of the price movement. This concept requires a lot more time spent studying the market whilst staying up to date with the latest news vs the binary options Martingale strategy. The saddle system requires some smart considerations and planned executions to get the timings right.

Pinocchio Strategy

Similar to the straddle approach, the Pinocchio scheme involves purposely investing against a current trend. For example, if an asset class is experiencing an upward trend, you would purchase a binary options contract expecting the price to drop. A clear understanding of current trends and a historical overview of the asset is important to make this work.

Unlike the binary options Martingale strategy, understanding the price patterns of a product/asset will help you make more considered trades, rather than just focusing on a continuous x2 tactic. Typically, the Martingale approach implies making the same trades in the direction of the primary trend, rather than switching against it.

Hedging

The process of hedging involves purchasing both a call and a put option on the same asset at the same time. This means, whatever the outcome, you should still make money.

This is a similar concept to the binary options Martingale strategy given that investors are confident that profits will be made, though hedging is a much shorter-term approach with a return of some sort guaranteed at the time of contract expiry.

The Anti-Martingale Strategy

As the name suggests, the anti-Martingale binary options strategy is the inverse of the traditional Martingale strategy we outline above. This idea involves reducing each position by half following every lost trade, whilst doubling each trade value following a success.

Essentially, profits are focused upon during a winning streak and losses are minimized during a losing streak.

Binary Options Martingale Strategy Tips

The best binary options Martingale strategy cannot be executed successfully without investors having a solid plan in place. As well as understanding the basics of the theory, we list some of the key factors that will also be important when it comes to using the strategy:

Understand Your Asset/Market

Take the time to research the market and your chosen investment asset. You are more likely to hit a winning stake if you have done thorough research and appropriate learning of recent trends, including price movement analysis and future projected quotes.

Emotional Control

Easier said than done but try to keep your emotions out of it. It is easy to make rash decisions if your trade plan is not following the outcomes you had in your mind. With the binary options Martingale strategy, be prepared for continual losses before, hopefully, a successful trade occurs. It is a concept that requires patience, a level head and a future outlook.

It might be worth setting a worst-case scenario maximum stopping point, perhaps an investment limit that you are not willing to exceed. This will stop you from having to cash out at the worst possible time and ensure you walk away before losses are catastrophic.

Funds To Get Started

The binary options Martingale strategy will work best when you have plenty of capital. When using the system, it might be worth dividing your account balance into smaller chunks. For example, a $1,000 account balance could be split into a $50 initial investment, then $100, $200 and $400 funding amounts ready to invest if a loss occurs.

You may end up losing all your money if you do not have enough funds to make the final investment to recoup your total losses.

Comparing Brokers

We have outlined some key considerations when deciding which broker is the best to execute the binary options Martingale Strategy:

Final Word On The Binary Options Martingale Strategy

The binary options Martingale strategy is risky but it can be rewarding if executed properly with a decent quantity of funds behind you. Use our guide above to create a clear action plan, including appropriate risk management before getting started in a live environment.

FAQs

What Brokers Accept The Martingale Binary Options Strategy?

You can implement the binary options Martingale strategy with almost any broker that offers the type of derivative. Ensure the exchange offers a user-friendly platform, useful trading tools and a competitive payout level to improve your chances of profitability.

Is The Binary Options Martingale Strategy 100% Profitable?

No, a 100% profitable binary options strategy is unfortunately not guaranteed, including when using the Martingale concept. Nonetheless, the idea suggests improved probability chances following a continuous losing streak.

Yes, the Martingale strategy is legal for binary options trading, though this does not mean it is a foolproof concept or should be used instead of other trading plans or tactics. There is no guarantee that profits will offset any losses incurred, so only invest what you can afford to lose.

What Is The Definition Of The Martingale Binary Options Strategy?

The binary options Martingale strategy involves doubling your position size each time a loss is incurred. It is popular with binary options investors given the simplicity of trading on just two outcomes. The approach is commonly referred to as the zero-expectation scenario.

What Are The Key Considerations When Getting Started With The Binary Options Martingale Strategy?

Not only should you consider the expected payoffs but it is also important to find a trusted broker with the relevant tools and educational content to hopefully improve your overall outcome. Also take the time to research your asset. In addition, the binary options Martingale system requires an adequate amount of money to ensure your odds of winning are fulfilled.