Tools for binary options traders

There are a number of available trading tools to help binary options traders to increase their probability of success. Of these, perhaps the most important of are provided directly by the trading platforms themselves. These include the close early and roll over features which can be equally helpful for traders in situations where trades are looking both good and bad. Additionally, the relatively unique ability for traders to hedge their positions is also a key feature which can be exploited by those who feel that a trade is likely to move against them.

Indicators and binary options trading tools

Many new binary options traders naturally look to the wealth of charting indicators in order to enhance their trading strategies. The vast an exciting number of these indicators not only enlivens charts but also creates the appearance of reliability with any binary options trading strategy. Indicators can certainly improve trading profitability and some of the most reliable strategies use key indicators such as Oscillators, Moving Averages and Bollinger bands. Additionally however, the use price action techniques to spot profitable trading opportunities can also be successfully employed within technical trading strategies and using reasonable charting software such as Metatrader.

Using the Close Early tool

However, many traders initially overlook the tools available through their platform. These include several helpful features which can be very useful in difficult trading situations and can also help a trader in improving their long term profitability. The first of these features is the ‘Close early’ function offered by many binary options trading platforms. Close early allow binary options to be expired before their pre-agreed time and is especially useful for traders who fear that their position may be turning negative.

The costs of closing early are a lower percentage return, depending on how long the options have to run and also where the current price is relative to the strike price. The close early feature can essentially prevent the terrible feeling when a positive trade moves in to negative territory shortly before the binary options expire. It can also be used when a trade is beyond repair and cutting the losses of these options allow the trading capital to be invested elsewhere.

Using the rollover tool

Another feature which can be very useful as another powerful tool to binary options traders is the Rollover feature. This is perhaps most effectively employed by those with some experience of trading with the idea being that it allows the expiry of the options to be extended. Unfortunately, this is not a free tool and requires an additional investment on top of the original which can push losses much higher than the original trade would have incurred. However, for those trades which still appear to be strong, yet are likely to end up negative without extending the options this tool can potentially turn losses in to profits. A reasonable degree of confidence is required to extend the options but, if the criteria for the binary options trading strategy is still relevant, this tool can allow critical flexibility in the timing of the trade.

Hedging in order to lower trading risk

Finally, a tool which is not promoted directly by binary options platforms, but which is available to all traders, is the ability to hedge a trade. This feature is unique to binary options and allows traders to have more than one position open at any one time. The rationale for this technique is to limit risk when taking high-probability trades such as break-outs. The hedged position can effectively neutralise the risk should the trade appear to fail. This way, traders can let the profitable trades run whilst those which may threaten to reverse can be neutralised relatively easily.