Early closure is a new feature in binary options trading that can be used to exit the market before it reaches expiry time. Using this feature, traders can reduce the loss they might have faced for wrongly predicting the value of options after they expire.
Also, closing a trade before time cuts down the profit that a trader makes for correctly predicting the value.
When Can Early Closure be used?
Early closure is a new and improved way of trading that can be used independently. As a trader, you can choose early closure in two cases.
- However, when an available option is profitable, there is a high chance that its price might fluctuate significantly, causing a massive loss to traders.
- It can also be used when the binary market takes a sudden and unpredictable turn.
What to remember when Using Early Closure?
When using early closure, remember that as a trader, you should not always choose this option. It’s because, with regular early closure, your losses will get limited, but it will make the binary brokers go out of business.
Problems with Early Closure
While early closure is beneficial, it also has some problems. For starters, this option is only available for longer expiry times like 30 minutes, 1 hour, and so on.
Also, you won’t be able to exit the market quickly. However, there will be a certain window based on the expiration time. So, you can make early closure accordingly.
Though exiting the market before expiry time can bring huge profit, you should decide after considering everything.
Once you have click on the early closure button, you will be responsible for the losses or profits you have made.