Rollover and close now are two tools that are almost basic to every binary options broker out there right now. So if you want to use it effectivelly you need to know what is important to know about thema nd how to use them, basicly how they work. To quickly summarize, rollover feature allows you to extend your expiration time of certain trade. Close now as the name suggest is the tool that lets you close the trade before the expiration of the time.
WHAT IS ROLLOVER FEATURE?
As we said, the rollover allows you to extend or increase the time of your trade before it expires. What it does is, you swap your option with the option that has more time on it. But this is not free and costs some extra money which usually is around 30% of your investment that you have put in the particular trade.
WHEN TO USE AND WHEN NOT TO USE IT?
You can use this feature, rollover, when you have done your analysis correctly and you know it is just a matter of time to go into your way. Means, that if you will be short for small amount of time, it is best that you use this feature , so trade can finish in the money. If you already are in the zone of money, then you do not need to use this since you are only risking more. You also do not want to put in use rollover when you see that the trade is coming against you. Good example would be, if there is some news that you did not expect and therefore your trade goes out of the money zone. In this case, rollover feature is not a good decision and it is better that you cut your loss.
WHAT IS CLOSE NOW FEATURE?
This is by my expirience even better feature then the rollover one since you can close your binary option trade before the expiration time. Means, that you can take your profits or cut losses. This way you reduce the risk and gain profits and you can go into another trade.
WHEN TO USE IT AND WHEN NOT TO USE IT?
This tool or feature is easy to use since your binary options broker will display you this feature when you have opened your trade. We know that the price of the option you have choosen is based on the price of the underlying asset and the expiration time. If you wish to cut losses or gain profit you can use this feature but your profits will be smaller. You just have to think reasonably when to use it, otherwise there is no reason for why you should not use this tool since it really is amazing addition to trading and more people should take action with it. Cutting your loss or take profits is just something you need to do in order to be a good trader.
Both of these tools are great and there isnot much spotlight on them although they could save you numerous times and save your money aswell. You just have to learn when to use it in proper way with your trading strategy. Only thing is that window of time to use this tools, which varies from broker to broker. This is something you will have to check on yourself with your selected broker.