Strategy of doubling the rate in binary options, Rolling over and doubling up in binary options trading
With proper management these techniques could sometimes result in significantly increasing profits; without proper planning they could result in disastrous losses. Below is a short summary of what these two concepts entail.
Then, five minutes before expiration, it suddenly starts moving in the right direction and the trader is convinced that, given more time, it will indeed reach the strike price.
So this trader decides to roll over the trade into the next hour by buying an additional hour.
Rolling over should not be done without the decision to do so being based on solid ground. The trader should at the very least study one or two technical indicators and get a clear signal that the price is about to trend in the right direction.
A decisive break through a moving average or the price emerging from the Ichimoku Kinko Hyo cloud could be useful in this regard. Doubling up This technique is related to but not the same as rolling over. In gambling it is known as the Martingale method.
It involves placing the same bet a number of times in row until the desired result is achieved —every time doubling the bet size. In binary options trading that would e.
The logic underlying this is that, if done a sufficient number of times in a row, there is an increasing probability of eventually hitting a winning trade, recovering all losses and walking away with a small profit. While this is theoretically true, the trade size might soon become so big that even a trader with a very large trade account would find it impossible to double up — in which case the whole account might well be wiped out.
The only sane way to engage in doubling up is to never do it.
Return to the main binary options page. About the Author Marcus Holland - Marcus Holland has been trading the financial markets since with a particular focus on soft commodities.