Rollover and Double-Up
Innovative features such as ‘rollover’ provide additional alternatives that can assist traders in increasing the profitability of their portfolios. Here is how it works:
The rollover features allows traders to extend the expiry time of an option to the following expiry time. Rather than incur a loss, traders can use this feature to extend the option’s expiry in the hopes of benefiting from a change in market conditions and turning a loss into a profit.
There are several conditions that must be adhered to in order to use this feature:
- The option must be out of the money.
- Each option can only be rolled over once.
- Options with an expiry time of more than 30 minutes do not qualify for this feature.
- Use of the rollover feature will increase the initial investment amount by 30% (If the initial investment in the option is $100, and the rollover feature is selected, the updated investment at the next expiry time will be $100 + $30 = $130).
This feature allows traders to double the size of the initial investment. Often traders click this are successful in predicting an option’s direction, and find themselves in the money. This tool lets traders increase the size of the investment, after they have already entered the position. This feature can assist traders in inflating the profitability of their portfolios. The target rate of the option will always be modified to the updated target price at the time of the “double-up” transaction.