Originally posted by Michael Hodges. Click here for the full review
Roll Over and Close Now Tools: What They Are And How To Use Them?
, or rollover, and close now
are tools that are being offered by more and more binary options brokers. In order to use them effectively it is important to know what they are and how they work. Rollover
is a feature that allows you to increase, or extend, the time to expiration. Close now
is another useful tool that works in an opposite but complimentary way to rollover. Together, these two features bring binary options trading to a new level, one that is closer in nature to standard options than ever before.
What Is Rollover?
The basic function of rollover and extend features are to increase the amount of time your option has until expiration. When you use this feature you are exchanging your option for an option that has more time to expiration. In order to do this you will have to put up some more premium. This usually varies from broker to broker but is usually a percentage (maybe 30%) of the initial investment.
What Is Close Now?
Close Now is a great feature of binary options trading and one that I think even more useful than the rollover feature. The close now feature allows you to close your options positions at any time prior to the options expiration.