Double Up is a feature that is now provided in many binary options platforms. The tool is quite simple, allowing you to replicate a trade with just a few clicks of your mouse. All of the trade parameters remain the same, with the only difference being that the entry price will be the current price and not the price of the trade that is being replicated. Even when this feature is not present, you can still replicate any trade.
The one and only reason to use Double Up would be to double your profits. The goal is to replicate a trade that is deep in the money with the hope that both positions yield a profit. Knowing when to use this binary options tool is the key to success, as it is entirely possible that both positions could finish out of the money if the market is too erratic and/or the feature is not used correctly. There must be some solid reason for making the decision to enter into two trades instead of just one.
As with all of the optional features offered within binary options platforms, it’s wise to make decisions about their use in advance of entering into a trade. Double Up is no different. You’ll need to consider whether or not you are willing to replicate a trade using the exact same parameters as the initial trade. For example, you may have invested $100 into the first trade, but do not feel confident enough about the prospective outcome to invest this same amount again.
Note that the Double Up feature is not the only way in which to replicate a trade. A new trade can be created, using different investment amounts if you’d like. It may also be wise to adjust the expiry time should you be trading along with a price trend and fear that the trend will conclude before the expiry time does. At a base level, trade replication is always going to be most effective and profitable when a price trend is taking place.
The best strategy is to pre-determine just how deep in the money you’d like for the position to be before doubling. Consider the number of pips that you would like to see the asset price move before taking action. Doing this will help you to eliminate emotion from the decision-making process and can also help in avoiding mistakes due to indecision. Trying to make a decision when the expiry time is ticking down is not the ideal situation.
Most binary options brokers charge no fee for the use of their Double Up tool. However, it is wise to verify that your broker does not assess any costs (above the investment amount) for the use of optional features. Typically, there is no cost associated with the use of Double Up or Sell features, but there will likely be a cost for using Rollover (expiry time extender). Consider testing out such features using mock or paper trades prior to using them in actual investment situations.
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