The weekend is always an interesting time for binary options traders, even those that solely trade stocks. This might not make sense because stocks are not traded on the weekends, but this doesn’t mean that nothing is happening. There is always a lot of behind the scenes actions taking place, and the astute trader needs […]
Using the Double Up Platform Feature
Double Up, or similar investment doubling features are now available in many binary options platforms. In most cases, the feature provides the means to instantly double the investment amount on a live trade that looks to be headed towards a profitable finish. However, within some platforms it works differently, serving instead as a trade replication tool that will quickly replicate an open position that looks to be headed towards finishing in the money. There are benefits to the use of this optional feature, but these are only derived when the feature is used correctly.
There are set rules associated with the use of Double Up. One is that the option must be open and not closed. Additionally, there will be a set time period allowed for its use, with the ability to double the investment amount or create a replicated trade disappearing as the conclusion of the expiry period draws near. Often, Double Up is available only on options with an expiry time of one hour or longer, with the ability to use the tool being removed when the expiry time has ticked down to ten minutes remaining. When used as a trade replication tool, note that the new trade will open at the current market price, and not the old price associated with the original trade.
Prior to putting this feature to use, consider the financial status of your binary options trading account. The chance of a larger loss must be taken into consideration. If the initial investment amount is low, the overall financial risk is low as well. In this case, the decision to double will not be quite as difficult. However, when the initial investment amount is $50 or more, some thought needs to be given with regards to whether or not the potential loss is one that you can accept and recover from. If not, the best idea is to avoid doubling.
Additional analysis is highly recommended. There must be some determination of how likely the asset price is to continue moving in the desired direction. A strong trend serves as an excellent indicator of a potentially profitable finish, while bouncing prices, or price movement in the wrong direction do not. At a base level, Double Up should only be used during times when the price of your chosen asset is clearly trending in the predicted direction, higher or lower (as forecast) than the entry price.
Timing of use is equally important. Choosing to double while the expiry time conclusion is still far off can be a bad idea at times. The longer the remaining time, the longer the asset price will have to change direction. When using the feature to simply double the investment amount, consider waiting as long as possible to confirm the price action. On the flip side, when using it to replicate a trade, a decision will need to be made sooner, as the entry price will continually change. Here, it can be wise to replicate while the entry price is still low or high enough to allow for the proper range of movement.
The Double Up feature is provided as a convenience, allowing traders to quickly increase investment amounts or create a replicated trade with just a click or two of their mouse. This feature is completely optional, but can be beneficial at times. In general, there is a larger benefit derived from the ability to double the investment amount on an existing trade than the ability to replicate a trade. This is due to the fact that replication comes with a different entry rate. Most binary options platforms only offer one version or the other, not both, but when both are offered, selection between the two should be based directly on analysis findings.