At this point we know what binary options are and what types of options we have got. We also know how to create a simple trade, however we didn’t teach you yet how to monitor you trades and how you can work with already closed trades, so let’s get straight to it.
Where to monitor the success of our trades
After opening a new position our newly opened trade will be immediately displayed in a tight toolbar which is located below the chart of our asset. This feature allows us to constantly monitor the progress of our closed trades. In our example, we bought a call option of the currency pair EUR/USD in which we have invested 50$, and so far it seems that our prediction is correct. The current price is higher than the strike price (the price at which we closed the trade), that’s why the current price is lighting green. At this point, however, it does not really matter whether our trade is winning, or not, because it only matters what the price will be once the trade will expire in 25 minutes and 18 seconds.
Decision of other traders and expiration time
If we would want to know how other people trade, we can find this information right next to the chart at some brokers (usually on the left side). These values are usually pretty similar and in most cases we look at them only as a tentative interest, but in some cases we can see bigger changes, such as that 63% traders buy an call (Call, High) option and only 37% of them sell it (Put, Down). The expiration date is the time after which we know whether our trade was successful or not. During opening a new position you will always see time until you can place a position and time when this options expires. Once “the time until you can place a position” expires you can no longer create new positions with this expiry time and you have to choose another option to trade.
Modifications of already closed trades – Rollover, Double-up, Buy-out
Some binary brokers also offer three extra features that enable us to work with already closed trades, the functions are called: Rollover, Double-up and Buy-out. The first one called Rollover we use in case we want to extend our expiration time. You can apply this function when you discover that your predictions were not entirely correct and your trade needs to expire a little bit longer, in order to become profitable. But watch out when using this function, because if even the extension of your expiration date won’t help you, you will not only lose the trade, but you will also have to pay a little fee for its use. However it’s a great tool for experienced traders, which can save them from a losing trade. As the name of the Double-up function indicates, it will create a completely identical trade to the one you have already closed (same investment, same expiration time). The last third tool is called Buy-out, its usage is obvious, you use it once you want to sell the option back to broker (you will pay the broker a small fee in exchange for closing the trade).
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