STRATEGY 7 of binary options. Pre-term Option Closing
I think that pre-term option closing is not only the less risky but also the less profitable strategy of binary options. However, it has its advantages. You may conduct a lot of trades, but all of them (or most of them) will be PROFITABLE. It is better than making one large stake for 1,2 or 5 minutes and bear losses.
Close Now function offered by OptionBit broker allows to cancel the option before it is due.
For example: I bought a 100$ call option (ABOVE) for EUR/USD currency pair due in 1 hour. In 10 minutes or even earlier I see an opportunity to cancel my option, and if the price is moving in the expected direction, you can close the trade with $130 profit.
Information about your potential profit is constantly updating depending on correctness of your prediction. The longer your prediction is true, the higher will be your potential profit (the amount will be growing) if you close the trade before it is due.
Note that the price may go down. If after a steady growth the price starts falling, it’s highly probable to close the trade with a small loss. In this case, you will be offered, say, $85, if the price hasn’t dropped down significantly yet.
I recommend you not to wait long and close the trade even with a small profit in order to avoid the price going back.
Note that the option can be cancelled not later than 10 minutes till it’s due.
If I see that my prediction for 1-hour option is correct and the price has been moving in the predicted direction for 50 minutes after the option was bought, I don’t use Close Now function, as it’s highly probable to get 81% profit.
My advice is to monitor the price carefully in order to close the option as soon as the situation has changed.
Remember that you have less than 10 minutes till the option is due and the price makes an unexpected swing, you won’t be able to use Close Now function. In this case you will have to use other strategies of binary options to save your money (Catching a Trend, Martingale Method, and Trade Signals).
And now let’s go to practice.
Below you can watch a video explaining you how to use a Pre-term Option Closing strategy. Here I give my own example of making profit by using this strategy. I concluded two $100 trades and earned $30 and $55.
Below there are several VIDEOS which will give you answers to some questions concerning OptionBit platform:
How I Make Profit at OptionBit My profit increased to 433,000 rubles!