A payout is the expected financial return from an investment over a given period of time. Payout may be expressed on an overall or periodic basis as either a percentage of the investment’s cost or in a real dollar amount.
In binary options trading the payout is calculated as: the payout percentage in case you are in the money or out of the money multiplied to the amount you invested in this trade.
When trading binary options, the payout amount is known in advance, so you can choose where to trade and how much you want to trade. It is just the opposite with trading traditional stocks in which you sometimes pay more in commissions than what you made in profit, or spend a lot of time and thought for a small profit.
A binary options trader has to carefully choose on which platform to trade, because on different websites there are different payouts. You should also have in mind that, the highest payout does not necessarily means the greatest profits. As you already know, in binary options trading, there are many factors that can influence the direction of your trades, so knowledge combined with experience would be the best combination for you to succeed.