Over the past few years, the binary options trading have evolved tremendously.
The binary options brokers continue to bring attractive to spur growth.
Some of the important changes, which have revolutionized binary options trading, are as follows:
- Double up
The facility enables a trader to double the investment amount in already opened trades. By using the feature, a trader can realize an increase in profits, when the price action is as per the forecast. Based on certain terms and conditions, the facility can be used before expiry time.
For example, let us consider that the trader has bought a put option contract for gold, anticipating a decrease in the price. Fifteen minutes later, the trader believes that he should have invested more in the trade as the price moves as per the forecast. The double up feature can be used now to double the investment in the opened trade.
- Early exit
The feature enables a trader to exit early from a binary options trade to minimize losses or protect profits. If a trader suspects that the price action is moving against him, then such a facility can be used. The facility can be used even when there is a sudden trend reversal due to unexpected news. Since the result of an ordinary binary options trade is decided at expiry, a sudden price reversal can wipe out all the profits. Thus, the early exit facility allows a trader to protect profits. It should be noted that the use of the early exit facility will considerably decrease the pre-determined payout percentage. Thus, it should be used only when there is a dire necessity.
- Roll over
The facility provides additional expiry time for a binary options trade. When a trader believes that the price of an asset is moving as per his forecast, but would need some more time to reach a particular level, then a roll over facility can be used. The facility would save the trader from opening additional trades to adjust for the loss experienced in previous trade due to early expiry of the contract.
Some brokers allow a trader to insure a binary options trade. Under this facility, the trader can claim the investment back in case a trade ends in a loss. Naturally, the payout percentage would be relatively low in case the trade ends in a profit.
The facility allows a trader to alter the strike price after entering into a trade. It is largely useful when a trader feels that he might lose a trade because of a difference of a few pips.
- Auto trade
When a trader wishes to use the profits generated from one trade to enter into another trade, then an auto trade facility can be used. The contract gets terminated when one of the trade end in a loss or when all the trades result in success.
The feature allows a trader to enter a binary options trade when the price of the underlying security breaches a particular level. It is quite similar to the stop loss facility used in equity, commodity and forex markets.
- Social or copy trading
This feature allows a trader to automatically copy the buy/sell trades executed in another trader’s account. Similar to the forex copy trading facility, a binary options trader can even allocate the percentage of funds to be used to copy a particular trader.
- Option builder
It is specially created to accommodate traders who expect some sort of changes in a binary options contract. By using the facility, traders can custom build an options contract as per the need.
The binary options business is currently in a nascent stage. As the market grows, we can expect many more exciting developments.