Binary options expiration
In the last lessonwe talked about how a new feature known as variable options could help traders to lock-in profits or cut losses. This is a binary options expiration that allows the trader to postpone the expiry dates of the binary options contracts he has purchased. This is a trade preservation feature which attempts not to lock-in profits or control losses, but to give binary options expiration trade more room to breathe in order to allow a trade otherwise destined for loss to recover.
Let us illustrate this with the same example binary options expiration we used in Lesson 7. Worse still, the expiry is set to Monday market close.
Now if this trade is already in a loss position, there is no profit to rescue. Rather, the trader can decide to give the trade room to recover by extending the expiry date from Binary options expiration market close to a comfortable future date when he feels the bad news from the Eurozone would take hold of the market once more. For this feature to work out well in your favour, you need to study the market and do some analysis to see if the trade truly has any chance to recover.
The truth is that it actually works. I was bullish on the AUD, but one of the trades was negative to pips at a point, while the other was binary options expiration at a point. Some traders would panic on seeing the red colour of negative pips everywhere, but knowing fully well that the AUD was soon to be on a bullish roll as a result of some positive market data, the trades were allowed to run and they recovered to 73 pips and breakeven respectively.
When you need some time to let your well analyzed but probably ill-timed trades to recover, the roll forward feature is what binary options expiration need. Using the Roll Forward feature will cost the trader some money, just as we have in the variable option feature. But this is a small price to pay to have your trade rescued from ruin.
Once again, it is not recommended to use the Roll Forward at the slightest opportunity; abusing this feature could get you penalized by your broker. It is very important that trades are binary options expiration carefully and expiry times binary options expiration properly so that you will not have recourse to using the Roll Forward tool every single time your trade runs into trouble.
Do not succumb to the tendency to get careless with your trade planning just because you have a Roll Forward feature. It is only available on binary options expiration broker platforms anyway, so many traders will not have the opportunity to use it. But if you are lucky enough to have an account binary options expiration a broker that offers it, then use it carefully. How Postponing Binary Option Expiry Times Can Work in Your Favour In the last lessonwe talked about how a new feature known as variable options could help traders to lock-in profits or cut losses.
So what exactly is the binary options roll forward feature?