The Double Up feature, which is no present in some binary options broker platforms, allows the trader to double their investment on specific trades. In order to use this feature the trade must be live. This option will not remain in place throughout the entire contract expiry time and should disappear when the live trade is nearing its end. Double Up should only be used when the trade seems to be headed towards a favorable outcome. This may make it seem easy to know when to use this binary options trading feature. However, there is more to consider.
Money should be the first consideration. Since the investment amount will be doubled, one must consider the possibility that the trade ends out of the money despite the current price trend. Is the investment amount large enough that it would be difficult to sustain such a significant loss? If so, think carefully before deciding to use the binary options Double Up feature. When using smaller investment amounts, the decision should be much easier. Should the asset price trend be moving in your favor, feel free to use this feature in hopes of doubling the profit amount.
Another consideration would be the actual asset price performance. Is the trend strong enough to support a high possibility of the binary options trade ending in the money? Too many up and down fluctuations should be considered a strong sign that the trade outcome will be impossible predict and is therefore not a good trade for using the Double Up feature. Solid price movement, either up or down, will signal the best possible time to consider using this feature.
Expiry time must also be considered. If this time period is lengthy, consider waiting until the last moment to use the Double Up feature. Lengthier binary options trading periods allow plenty of time for the asset price trend to change direction. Take time to learn how long the Double Up feature will remain an option and then wait to see whether or not it should be used. Watch for clear indicators and strong asset trends. These should be monitored closely up until the last possible moments left for using the Double Up feature.
The possibility of doubling the profit amount could cause excitement that leads to poor decisions. Try to eliminate as much emotion as possible and focus on the numbers. Those who are able to master the use of the Double Up feature stand to earn substantial profits from binary options trading. Those who use the feature without thinking it through stand to lose investment amounts at double the rate. Not all trades will present the right conditions for doubling the investment. Traders should never feel pressured to use this features when the conditions are unfavorable.
The advantage of Double Up for the binary options trader is the ability to earn double profits on certain trades. The advantage to the broker is the ability to collect extra money from traders who do not use this feature correctly. Extra features within the binary options trading platform can be a wonderful thing. Just be sure that you know how to use each properly prior to using them.