When it comes to binary option trading, we are well acquainted with the concept of expiration time and date. And we also know that there are different options as far as expiration time is concerned. Moreover, not all expiration times are offered by all trading platforms. So, when it comes to choosing one, we have to do so with utmost caution and accuracy so that we get the maximum out of the trade and our predictions. There is a concept called “roll forward feature”, which has time and again proved to be beneficial for most of the binary traders. This feature or more rightly can be called a trading tool has a lot to do with the expiration time and setting one as per your convenience. In this article, this is exactly, what we will talk about. So, read on for better insight.
Roll forward in binary option trading
With the help of this feature or trading tool, a trader will be able to defer the expiration time that he has chosen for his trade. In this trading feature, you don’t have to be prey to stringent “lock-in” earnings or strive hard to minimize losses. In fact, this feature will allow a trader much more “breathing” space. In order that the feature works well for you, you will be required to observe and study the prevailing trends in the market well and thoroughly. This is usually done with the help of analytical tools and analysis charts and graphical representation of the trades that are carried out in the market. The best part about this feature is that the concept works well on most of the instances.
This feature works best when you have not timed your trade in an appropriate manner and you want to recover from the error that you have committed. The roll forward feature will bail you out under such circumstances.
Abusing the feature of roll forward – Consequences
It is not always a wise move to opt for this feature with the drop of a hat. If you are found misusing the feature, you might as well be penalized by your trading platform or broker. You can find out from http://www.binary-options-brokers.com/, which brokers or trading platforms will offer the provision of using this feature. Also, this tool should not be used randomly when you trade binary options. It will not only make you dependent on the feature but in future it will stop you from taking the right decision about any trade. In other words, it will restrict your performance in binary option trading and you will always have to juggle your trading moves as it will be difficult or you to decide which step or approach to opt for.
If you have set an expiration time at a time when the market is bullish but in due course you find that the market is not moving in the direction you had predicted due to certain conditions like breaking news and the like, you can opt for the feature and minimize your loss as much as you can.