The term Return refers to the percentage of the amount of invested funds that an investor receives when trading binary options, should a trade expire In The Money.
When trading binary options, a trader will place a trade that will always have a fixed return rate which will be known to him/her before the option is even placed. A Return is usually published as a percentage.
A Return is only given in the end of an option expiring In The Money. In the event of an option expiring At The Money, the trader will recover the initially traded investment, but will not make any profit.
For example, if one places a CALL option on a certain currency pair on any broker’s platform, a return percentage will be given before the trade is even executed. The trader will then execute the trade and should the option expire In The Money, he/she will then receive a combination of the initially invested amount and the profit.
Brokers usually give a payout between 70% and 85%, depending on the type of option traded. Some brokers offer high yield returns on certain types of options which can reach up to 350%.