We all know about spot trading it’s not a big deal. But with binary options its bit difficult if your broker does not support such facilities. In most of the cases, once trader places a trade for any trade duration. His/her trade expires only after that time, no matter win or losses. If you placed a call option in a prediction of rising market for 2 minutes. But unfortunately, you saw market instead of rising its falling. In such case, your first action would be closing the trade before expiry in order to reduce loss. This is common scenario happens most of the time. But very less amount of binary options brokers supports such feature to close your trade before expiry, like binary.com.
With Binary.com options trading platform you can close your trade earlier than expiry time with the low amount of losses or profits. Which is very convenient for most the traders.
How To Close Binary Options Trade Before Expiry:
Here is the step by step guide how to trade with this feature.
At first, we are going to place the order from the order dashboard. In this case, we are using following trade parameters:
Trade Duration: 2 Minutes
Trading Instrument: Volatility 10 Index
Trading Type: Rise/ Fall
As we can see here minimum trade duration is 1 Minute. But 1 Minute is very less time to judge a trend, so we are going to use 2-minute duration. The payout is the amount which you want to receive after the trade wins. Start time is now, but you can choose any future start time. For example, if you want your trade to start after 5 minutes or even after 1 hour. In this case for demonstration purpose, we have used lower betting. That means after 2 minutes price will go lower than our entry price.
Here we have added the orders, you can view your potential payout, the total cost of your trading & potential profit. Next, we will observe the chart, where we can see that market is instead of falling its rising after few seconds of placing the bet.
In the picture at the left, we can see how the market is rising, thus there is no point of holding the trade until expiry & receive a full loss.
We can see we have the option of selling the contract at market price with “sell at market” button. It also shows that we are having 18.25% losses on our investment. Thus instead of having full 100% loss, it is better to close the trade at 18% loss. Saving the rest of the 82% of the stake. As mentioned in the picture contract price differs based on the market price movement.
After selling the trade with the market price, we can see we have lost only $1.00 instead of full $4.15. Isn’t pocket saving? This how smart traders save money & increase profits when the market reverses.
When To Close Trade Early Before Expiry?
Only when you feel that market is no way getting back to your profit zone. You have good confirmation of trend reversing against your trade. Then you can use this option. But remember to use it fast, because more than time will pass, your loss will increase. It is perpendicular to time.
Does The Close Trade Option Be Available All Time?
No, it’s not. Because of market price changes faster. So you need act quickly. The example posted above, after few seconds we could close the trade at 18% loss, but if we delay it then it will go over 100%, thus there is no point of the closing trade early. Hence, “Sell At Market” option will not be visible. Plus it also depends on the trading instrument. This option is mostly available for volatile instruments.
You can start trading with binary.com without any investment. Get $10 Free no deposit bonus by registering with this link. After registration please write emails at firstname.lastname@example.org in order to activate your bonus.
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