Rollover and close now binary options tools

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Early Out, Close Now And Rollover Tools For Binary Options

Risk Management Tool For Binary Options Traders

Risk management comes in many forms. One way is to use the early out, close now and rollover features that are available with many of today’s binary options brokers. These features allow you to take advantage of profitable opportunities and cut losses in the event a trade turns against you. As good as they are however, there are some limitations including the fact that not all brokers support these tools, and the ones that do will probably not let you use them indiscriminately. Regardless, they are good tools and ones you should be familiar with.

Early Out and Close Now are basically the same thing. They let you close a position early, before expiry, and take a smaller profit or a smaller loss depending on what is showing. Assuming a position is in the money and theoretically profitable you can sell it and take some profit but it will not be as much as if you held the option until expiry. The benefit is that it allows you to close a trade that may otherwise move out of the money before expiration. The risk is that you close too early and miss out on profits you would have otherwise realized.

The problem with this feature is twofold. The first is that not all options have this feature. What I mean is, usually only longer term options such as 30 minutes, 1 hour or end of day will have an early out feature. Shorter term options like 60 seconds or even as much as 5 minutes will usually be excluded. The other problem is that there will always be a window of opportunity; you won’t just be able to open and close a position, and you won’t be able to close it once it enters a certain window leading up to expiration. Using one hour expiry as an example the window might 50 minutes, that is, there is a 5 minute black out period immediately after the option is opened and the last 5 minutes before expiry. The first black out period is not an issue usually but the second one can be, especially if you wait to long to close and then lose out in the last 5 minutes.

The Rollover, sometimes called Extend or something like that, is a feature that allows you to add more time to a trade. At first this may not sound too exiting but in terms of your trading it could mean the difference between taking a loss and taking a profit. If your trade is already in the money and showing a profit there really isn’t a reason to add time to it. On the flipside, if your trade is not in the money but you think it will be adding a little time could be just what you need to ensure a profitable return. After all, choosing expiry is one of the toughest aspects of trading binary; it’s easy to pick which way a market will go but it is very hard to say precisely when it will move there.

Again, this feature does come with some caveats. The first is that it will cost you some more money in order to do this. It only makes sense, right? The original trade was for $X at X amount of time, if you add another X amount of time it will cost you some more money. The good news is that the payout will grow as well. The second is that you can’t just keep rolling over a trade until it wins. Theoretically you could of course, but the broker won’t let you. For the most part you will be allowed to do it only once per trade.

Where You Can Find Early Out And Rollover Trading Features

Now, which brokers have such features? The most prevalent platform to support Early Out and Rollover is the SpotOption platform, which also happens to be the most prolific in terms of brokers. This is a good thing because it mean there is a very good chance of finding a respectable broker that is regulated and licensed for your country. AnyOption is a proprietary platform and broker that also has Rollover and Take Profit features. It is EU, CySEC and South Africa regulated and one of the top trusted brokers around. Another, TechFinancials the parent of 24Option, only has early closure but it is available on a much wider range of options and expiry than what you find other places.

Rollover and close now binary options tools

Rollover and close now are two tools that are almost basic to every binary options broker out there right now. So if you want to use it effectivelly you need to know what is important to know about thema nd how to use them, basicly how they work. To quickly summarize, rollover feature allows you to extend your expiration time of certain trade. Close now as the name suggest is the tool that lets you close the trade before the expiration of the time.

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  • Binarium
    Binarium

    Best Binary Options Broker!
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  • Binomo
    Binomo

    Honest broker!

WHAT IS ROLLOVER FEATURE?

As we said, the rollover allows you to extend or increase the time of your trade before it expires. What it does is, you swap your option with the option that has more time on it. But this is not free and costs some extra money which usually is around 30% of your investment that you have put in the particular trade.

WHEN TO USE AND WHEN NOT TO USE IT?

You can use this feature, rollover, when you have done your analysis correctly and you know it is just a matter of time to go into your way. Means, that if you will be short for small amount of time, it is best that you use this feature , so trade can finish in the money. If you already are in the zone of money, then you do not need to use this since you are only risking more. You also do not want to put in use rollover when you see that the trade is coming against you. Good example would be, if there is some news that you did not expect and therefore your trade goes out of the money zone. In this case, rollover feature is not a good decision and it is better that you cut your loss.

WHAT IS CLOSE NOW FEATURE?

This is by my expirience even better feature then the rollover one since you can close your binary option trade before the expiration time. Means, that you can take your profits or cut losses. This way you reduce the risk and gain profits and you can go into another trade.

WHEN TO USE IT AND WHEN NOT TO USE IT?

This tool or feature is easy to use since your binary options broker will display you this feature when you have opened your trade. We know that the price of the option you have choosen is based on the price of the underlying asset and the expiration time. If you wish to cut losses or gain profit you can use this feature but your profits will be smaller. You just have to think reasonably when to use it, otherwise there is no reason for why you should not use this tool since it really is amazing addition to trading and more people should take action with it. Cutting your loss or take profits is just something you need to do in order to be a good trader.

FINALE

Both of these tools are great and there isnot much spotlight on them although they could save you numerous times and save your money aswell. You just have to learn when to use it in proper way with your trading strategy. Only thing is that window of time to use this tools, which varies from broker to broker. This is something you will have to check on yourself with your selected broker.

Roll Over and Close Now Tools: What They Are And How To Use Them?

Roll Over and Close Now Options for Binary Options Traders

Extend, or rollover, and close now, or early closure, are tools that are being offered by more and more binary options brokers. In order to use them effectively it is important to know what they are and how they work. Rollover is a feature that allows you to increase, or extend, the time to expiration. Close now is another useful tool that works in an opposite but complimentary way to rollover. It allows you to close a position early, sometimes for a profit. Together, these two features bring binary options trading to a new level, one that is closer in nature to standard options than ever before.

What Is Rollover?

The basic function of rollover and extend features is to increase the amount of time your option has until expiration. When you use this feature you are exchanging your option for an option that has more time to expiration. In order to do this you will have to put up some more premium. The amount will vary from broker to broker but is usually a percentage (maybe 30%) of the initial investment.

When To Use Rollover

You want to use rollover when your basic analysis is correct but you need more time for the trade to unfold. If your trade is in the money or looks like it will easily close in the money then adding additional money and time risk to your trade is unnecessary and a waste of money. Sometimes it’s hard to know when to use it, acting hasty could cost you more money than you need to spend, which is why Patience is a Trader’s Virtue that should never be underestimated.

When Not To Use Rollover

You do not want to use rollover when your trades turn against you. Let’s say the market drops on unexpected news and your trade moves out of the money then you wait to close it, hoping and praying that it comes back. When it doesn’t you give the trade more time and spend more money. This is not a good decision. You do not want to throw good money after bad, at this point it is better to cut your losses and get out with what you can. One way to avoid this type of set up is to follow the news.

What Is Close Now?

Close Now is a great feature of binary options trading and one that I think even more useful than the rollover feature. The close now feature allows you to close your options positions at any time prior to the options expiration. What this means is that you can take profits or cut losses well before the option expires. This can help you limit your risk to time exposure and free up your capital to reinvest in other trades. For more on risk management read our article, The Top 5 Ways to Reduce Your Risk in Binary Options Trading.

When To Use Close Now

Close now is pretty easy to use. Binary platforms with the feature display a buy now price for any options you own. The price of the options fluctuates based on the price of the underlying and the time to expiration. You can use close now to prevent losses or to capture gains but will lose some of your premium and profits. If the asset you are trading has made the move you expected well before expiry of the option use close now to capture that profit and move on to the next trade. If the asset has moved against you, use close to now to cut your losses and get back the capital you can, before you lose it all.

When Not To Use Close Now

After giving it some thought, I can not think of a time when you really should not use close now. If getting out of a trade is right for you then it’s right. Cutting losses and taking profits are two of the pillars of my personal risk management strategies and I can’t speak a bad word about them. Close now is the tool that allows binary options traders to do both of those things.

My Final Word

These are two great tools. They enhance binary option trading and make it more dynamic. The ability to extend time, cut losses and capture profits bring more credibility to binary options. When properly used they can be very profitable and are important tools in the trading arsenal. However, they both have one big drawback; the window of opportunity for using these tools varies from platform to platform so you will need to be sure and choose a binary options broker that has them, and know how they work on the platform.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Options Broker!
    Perfect Choice For Beginners and Middle-Level Traders!
    Free Demo Account! Free Education!

  • Binomo
    Binomo

    Honest broker!

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