The Efficient Rollover Binary Options Strategy

The Efficient Rollover Binary Options Strategy

Submitted by adil on Thu, 10/23/2014 - 09:33

The best thing about the Rollover binary option strategy is that most of the online brokers allow the use of this strategy. Expert traders frequently use this strategy to make frequent in-the-money trades even when the chips seem to be down! If this strategy is used wisely and precisely, the chances of making big profits are enormous and if you are not good at using this strategy, brace yourself for big losses.

Concept:

The rollover strategy basically revolves around the methods to reduce or limit the number of out-of-money trades. It is one of the only few strategies that actually allow the traders to save the day when their trades appear to be heading towards a big loss.

Requirement:

There are not many requirements to use this strategy but all of them are very important.

• The broker must offer the rollover feature
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How to use Rollover strategy:

The following rules may seem very simple, but care must be observed in their implementation or the results may not be up to the mark.

• Use this strategy only when working with live trades and only when recording loss.
• The rollover can be implemented one time per each trade.
• Consider this rollover feature as a charged perk. Brokers usually charge a fee to utilize the rollover feature which gets as high as 30% of the trade value.
• There is a time window set by the brokers and you must use the rollover before that. If the time window ends, you won’t be able to use the rollover feature. The time window usually closes 20 minutes before the expiry time.
• The time window reinitializes whenever you use the rollover feature.

Examples:

#1: You executed a CALL trade on the currency pair of GBP/USD by depositing $200 and selecting a strike price of 1.5100 and set the expiry time at 04:00 GMT. At 03:30 GMT, the current value is 1.5085 and your trade is generating loss. You do a quick fundamental and technical analysis which gives you the indication that the current trend suggests the strike price will be met in the next two hours. This is a good situation where you can use the rollover feature by extending the expiry time by two hours. Your trade will become in-the-money and you will have turned a loss situation into a winning one.

#2: You executed a CALL trade on the currency pair of EUR/USD by depositing $100 and selecting a strike price of 1.5100 and set the expiry time at 14:00 GMT. There are only 25 minutes remaining till the expiry time and your trade is not generating any revenue. A timely analysis shows that your trade will become in-the-money in the next 45 minutes. In such a situation you should use the $30 priced rollover feature and earn $234 ROI before the next hour mark.