when to exit a binary option earlyTraders often ask when to exit a binary option early.  In this video, I show you when I would exit a binary early.  Additionally, I show how a binary option does not have to move a lot to produce the full profit potential.  Even an expiration that is greater than one tick can make a huge difference when trading binary options.

When to Exit a Binary Option Early

This particular trade was on the USD/JPY.  A long trade was initiated one strike from where price was currently trading.  Using one strike price under the current strike was the area that I would have exited the trade.  In other words, if price went against me one full strike then I would have exited.

The risk was approximately $40 per contract and the full profit potential was realized because the indicative price index expired at 101.772.

[youtube https://www.youtube.com/watch?v=lj12g8B86b8]