In binary options, traders can use the features of ‘Roll-over’ and ‘Double up’ to maximize their profits. Using the feature of Roll Over, a trader can extend the expiry time of an asset and the trading condition can be more favorable in the next expiry time.
Double Up can be used to double up the investment amount and to recreate the same position when market conditions get changed.
Overview of Roll-over
In binary options, a trader needs to predict the market movement of an asset over a set expiry period. If the trader predicts correctly, he gains, but if he fails to predict correctly, he will lose the trade. Many times when a trader goes out-of-money, he would prefer to use roll over to delay the expiry time of the asset. This way, he will try to extend the position until the next expiry period with an expectation that his estimation will go appropriate and he will not lose the trade.
However, certain conditions need to be fulfilled in order to take advantage of roll over:
- A trader will be allowed to use roll over only once.
- Unless the open position goes out-of-money, the roll over cannot be used.
- The invested amount will increase by 30%.
- The roll over feature can be applied to assets that have expiry times ranging between 15 and 30 minutes.
- A trader can roll over to the next expiry period, provided it should not be more than 15 minutes time for the expiry
- The next available time period should not be the last trading period of the asset for the day
Overview of Double Up
A trader may prefer to use the ‘Double Up’ feature when he thinks that the asset will move in the same direction he has opened the position in. In such a case, the trader can double up the investment amount and can multiply his profits. But the current rate will be applicable on the doubled up investment.
The investment will not be doubled up at the rate on which the position was actually opened up. The Double Up feature can be used prior to the expiry time of an asset. There are many platforms that allow traders to use the feature up to five minutes before the expiry period.
However, the Double Up feature can multiply the losses as well if a trade concludes out of the money. A more experienced trader can use the feature to multiply their profit level, but an experienced trader should think twice before using the roll over feature.