The Option+ feature has caught the fancy of quite a few investors. And I’m pretty sure once you try it, you will definitely like it. I use it from time to time, and I’m happy to share the information about it with you.
If you buy a binary option in the Option+ system, you may close a binary option early and get a part of your profit.
Some traders call it as a buyback of a binary option by a broker. Anyway, if you use this feature, you see the actual price of a binary option and your return. This is an amazing instrument as it allows you to reduce risks and buy binary options even if you are not completely sure of your investment. You can check how the Option+ looks here and welcome to Glossary.
Let’s consider some examples to understand what Option plus is and how it works.
Let us assume that you trade binary options on shares. You choose the shares of France Telecom and expect them to rise (CALL). The price suddenly soars, but, as you know, a jump is typically followed by a bounce. If you catch the peak, you can early sell the binary option at a good price.Let’s us assume that you buy a binary option on the Dow Jones index. You anticipate that the price will fall. It really goes down but the pattern on the chart shows that it’s about to reverse. In the Option+ system, you can close the binary option early and get the actual profit. It stands to reason that your profit is low but it’s better than to lose 85% of your investment.Once immediately after purchase, the price moved to the direction opposite to my forecast. I looked at the chart and understood that the price wouldn’t climb up, and my forecast was wrong. I closed the option early due to the Option+ system. I lost 20%, but without Option+ I could lose 85%.
The cons of Option Plus
Unlike the classic binary options, the Option+ system has some restrictions which can be a minus in some situations.
- Maximum duration of a binary option is 30 minutes.
- The choice of underlying assets is limited, you can choose among 6 to 8 underlying securities.
- The latest when early closure is available is 10 minutes before expiry.
- The profit is lower comparing to the classic binary options, investment returns just 60%
- A $1.00 fee is charged every time you invest using Option+.
This system allows a trader to minimize risks and have complete control over investment. For instance, you buy a binary option, the price moves in the right direction, and your profit is, say, $90. Suddenly, theprice starts to reverse, and your profit decreases to $60. If you close the option at the right point, you will get a return. Though your return is lower, you don’t risk losing 85% of your investment.
If you want to use this feature, you need to select the Option+ tab.
Once you have chosen an underlying security and amount of investment, you immediately see the profit you will make if your forecast works out or your loss. If you don’t like the amount or whatever, you need not to trade. Trading starts only after you click CALL or PUT.
Right after purchase of a binary option in the Option+ system, you see the price on the chart and your actual profit or, rather, the price at which you can sell the option at that moment.
If everything goes right, and the price moves in the expected direction, then you should not sell the binary option early. You need to wait until expiry and get a profit in the full amount.
How to Use the Option plus system?
Select an underlying asset:
Select the amount of investment and one of the directions you think the price will take, that is, CALL (UP):
As you see, 10 minutes later the price of Apple stock is higher. If to click the GET QUOTE, you’ll see the profit you’ll make if you close the trade early:
As the price of the underlying asset fluctuates, the offered price is valid within 4 seconds.
I can close the option early and make a $3.45 profit. I see the price keeps rising, and I don’t close the option. I wait until expiry and get the following result:
Option+ works well both for newbies and professionals trading in instable environment and looking to minimize their risks.