‘Early Closure’ is one of the newest features in binary trading. Until recently, there was nothing that the binary options traders could do, except wait for the options to expire. They were at the mercy of the market’s movement and trends. Now, however, traders can close a position using the ‘Early Closure’ feature if they feel uncertain or in response to unexpected events.
The Binary Trading World
For a long time, the binary options market had no provision for closing trade early. However, that choice is now available and can be beneficial for those who want to preserve their gains. The main function of ‘Early Closure’ is to reduce losses in a trade.
As the trades’ results are not guaranteed, there is a risk of losing the money invested in any trade. It is possible for even the most promising trade option to suffer changes and face losses. In order to reduce this possibility, the use of ‘Early Closure’ can prove to be a wise choice.
What Is Early Closure And How Does It Helps?
Trading binary options may be tricky, so you need to be extra careful especially when you try to predict the result of assets moving often and over a short time span. One way to bypass such a barrier is to utilise the ‘Early Closure’ feature. The benefits of this function include the following:
• Minimizing or reducing the losses
• Turning potential loss into profits
• Cancelling losses
In various situations the binary option trader realises or predicts that the trade will lead to a loss. Rather than losing the investment that has been made, the trader can select the ‘Early Closure’ feature and retain about 70% of the initial investment amount. The actual sum that can be saved will differ with every broker, so those using this function, should select a reliable broker.
Here is an example: You have invested in a price movement of an asset and the market direction is not going in your favour. It seems likely that the price prediction will end up ‘out of money’. In this situation, you can use the ‘Early Closure’ feature and exit your investment taking a certain percentage of the actual invested amount. ‘Early Closure’ is simple to use and the feature is situated in the centre of the trading screen. Over the life of a trade, there are many times that the ‘Early Closure’ option is available.
Early Closure Benefits
Early Closure is available from 3 minutes after purchasing the option until 5 minutes before the expiration time. In order to use the Early Closure feature, just click on the “close” button, situated under the target price and the market price fields in the option you have bought.
The number above the button is the current price at which the brokerage closes the option at an early date. You just need to click on the button and it’s done! You have closed the option using the Early Closure feature. It is a quick, simple and profitable way of trading the binary options.
Several brokers offer the option of expiry calculation as well, so that you can get to know the rough amount that you will get if you opt for Early Closure. This way, you can be aware of the exact amount you will get even if your options lose.
By using the Early Closure feature, you can gain financial advantage along with numerous additional benefits. Make sure that the brokerage you deal with offers the Early Closure feature to enhance your trading experience.