What is a Binary Options Rollover? | Definition & Examples


A binary options rollover is a function that allows traders to extend the time for the trade. If you have placed a trade and the binary options market prices are moving according to your predictions, but it has limited time, you can apply the rollover function. 

It enables traders to open trades and extend the trading time. This feature requires that traders know how to use it appropriately to avoid making mistakes. 

Binary options rollover in a nutshell

  • Traders can extend the time for trading binary options.
  • Extend the trade expiry by investing 20-30% more funds.
  • Advantages: Crucial for non-realized profit targets; traders use it when the market movement suggests potential additional profits.
  • Disadvantages: Needs careful use; using it wrongly can risk earlier profits if the market changes direction during the extension.
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How do a binary options rollover feature work?

The rollover feature allows you to extend the expiry time of a trade when trading binary options.

For example, imagine you are in a trade that will expire in an hour and you notice a favorable trend in assets for which there is no apparent reason to exit. You extend the expiry time by investing an additional percentage, e.g. 20%. You make more profit if the asset expires favorably; if it expires unfavorably, you suffer a greater loss.

It requires that you add some funds to extend the trade, and funds could be a percentage of what you used to open that trade. Depending on the trading platform, some require an additional 20% to 30% of the initial capital to extend the trade. 

Advantages of a binary options rollover 
  • It is crucial if the trade has not attained its profit target point. If the trader has confidence with more time, the trade could be profitable.
  • Traders use it when the trade is expiring, but the trader feels they can get more profits according to how the market is moving. 
Disadvantages of a binary options rollover 
  • It needs the trader to be cautious as if it is not applied strategically, it could ruin the profits made before if the market prices change direction during the extension period. 
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How to use the rollover in binary options

A trader must analyze before they use rollover features. It is because the trader extends the expiry time if the trade is already profitable in the hope of acquiring more, the market prices can change at any time. 

It is effective if a trader learns how to apply it at the appropriate time without having emotional bias. It can be a good tool if you use it with proper research. 

Conclusion – A rollover is a useful tool

A rollover is a good tool when traders when apply it. Traders use this tool effectively, and it is helpful if they use it when necessary. Trading binary options require traders to be patient without making hasty decisions. 

What conditions must I meet to access the rollover function?

It has no conditions, but you need to pay the premium fees like the percentage of what you deposited or a fixed cost. 

When can I use rollover in Binary Options?

You can use it before the current open trade expires but has a limit of the last five minutes.

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About the author

Percival Knight
Percival Knight is an experienced Binary Options trader for more than ten years. Mainly, he trades 60-second trades at a very high hit rate. My favorite strategies is by using candlesticks and fake-breakouts

Write a comment

  • victor

    says:

    please can you list me some binary option brokers that allow me to rollover on a winning trade

    • Andre Witzel

      says:

      Hey Victor, Why do you need this feature? Actually, we do not know such broker