The benefit of knowing the potential gain as well potential loss while trading makes binary options trading one of the most preferred options amongst the traders. This limited risk financial instrument allows the financial investors and traders to consider both the options closely when the trade is executed. Moreover, the best things about digital option trading is that there are just two outcomes for the payouts, in-the-money payout at expiry ( around 85 percent) and out-of-the-money payout at expiry (from 0 to up to 15 percent).
Although many traders find this fixed payout structure really good as the risk is known in advance, some traders who are mostly fond of profit and/or stop loss when the asset is trading above or below its purchase price find the fixed payout idea more of a limitation than an advantage. There is a way out for such traders as they can sell their binary options way before its expiry and the price is based on the value of the underlying assets at the time of its sale.
How to sell binary before its expiry?
If you wish to sell off your digital option before it expires, then you have to ensure that it is listed as “Closable” on the website. Some websites like OptionFair also issues close early quotes some minutes after the execution of the trade, once the trader has invested.
This option to close before expiry is made available by the trading website until few minute prior to the expiry of the option, as upon expiration the trading at the website closes and the traders are provided with the outcome, which as usual will be in-the-money or out-of-the-money.
Early Selling of Options at a Loss
The closable sale price of the binary option can be way less than the price at which the option was bought, in case the underlying asset trade out-of-the-money. This is because the option will not be going on a profitable track.
Early Selling of Options at a Profit
If you are lucky then closable sale price of the option can also be more than the price that was determined while investing that option, when the underlying asset trades in-the-money as the option is predicted to close at a profit.
Many binary options trading sites like OptionFair has “closable” options to sell the options before expiry. This option allows the traders and investors to keep a and whenever they are able to identify the track of their option, they can control the amount of loss or profit whenever they can. The websites offering “closable” option enables are traders to close their positions in advance and this is done with the help of their intuitive and user friendly platform. With the closable option, one can enhance their profits and lower their losses to a great extent and take benefit of it as soon as possible, without having to wait for the binary option to expire.Incoming search terms:
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