When using the Double Up feature, you create a duplicate binary options trade with the goal being to earn double profits. If all goes well, you net 2X the profit. If all does not, then there is the potential to lose 2X your investment amount. So as to ensure that the first outcome happens much more often than the second, you’ll need a solid strategy.
First off, be sure that you know the rules behind the use of the Double Up feature. When using this feature within the digital options platform, the new (duplicate second) trade will include the exact same trade selections as the first. However, note that the entry price will not be the same. Instead, it will be an updated, current price. This is one of the reasons as to why the potential for a dual loss exists.
Part one of this strategy will include monitoring the live asset price to see if it is indeed moving in the direction you’ve predicted. Next, you’ll need to perform some quick analysis in order to determine the likelihood that the price does continue to move in that direction. Lastly, wait as long as possible to make your purchase, allowing any undesirable price action to make itself known before you enter into an additional trade.
Within the brokers digital options platform, the Double Up option is presented to the right of each open position. This option will be available for a limited amount of time while the initial trade is running its course. As a general rule, it is wiser to double a short-expiry trade as opposed to a long-expiry trade. The reason being that with shorter time frames comes a decreased risk of major sentiment changes and total reversals.
Ideally, you’d double whenever you note a solid price trend, with the asset price moving in the direction you predicted. However, with shorter expiry times, a lengthy trend is not necessary in order to double your profits. You’ll need to give it some thought, while closely watching how the price is actually moving. Be careful not to get so caught up in the decision-making process that you miss your chance to double up.
Optional tools such as Double Up can allow you to make the most of great trades. Just be sure to use such features correctly so as to have them produce the desired result as often as possible.