Traders 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.