Early Closure

Profit in any market condition

One of the reason that 24option has climbed to the top of the binary options industry is the ability we give to our traders to profit in any condition, even when the market turns against you.
24option’s early closure tool is a built-in trading tactic that allows you to make the most of any trade, no matter which way the market moves.  Keep reading to find out exactly how early closure can earn you profit even in the most dire circumstances.

Early Closure – What is it?

Early closure allows a trader to exit out of an option before the expiry time for a percentage of the return.  For example, if an investment is going your way but you’re unsure if that trend will continue, you can use the early closure option to close the option before the expiry time and receive a percentage of your return, anywhere from 10% instead of 70% depending on the market.
This example also works in the reverse.  Imagine the market suddenly turns on your investment and instead of being a successful it looks like your investment will close out of the money.  Using early closure you can close out of the investment and receive a percentage of your original investment.

How do I use Early Closure?

Early closure is easy to use and is located in the center of the trading screen.  There are certain times in the life of the trade that early closure is available.  Early closure will only be available beginning three minutes after you have purchased the option and will be available until five minutes before your option’s expiry time.
To use the early closure option click on the ‘close’ button located underneath the Market Price and Target price fields in the option that you have purchased.  The number above the button is the current price is the price at which 24option is willing to close the option early.  Just click the button and that’s it!  You’ve closed the option early!  It’s simple, quick, and another profitable tool that 24option offers for successful binary options trading.

Is Early Closure available on all options?

While not all binary options have the correct parameters for early closure and so early closure is only available on certain option types.  For example, early closure is not available on 60 second options since the expiry time is too concise for an early closure option.  If you have questions about which assets are available, please contact your account manager.

Technical details

• Terminology

  The following terms are used by 24option to calculate values for closing positions prior to the scheduled expiry time:
  Market Price: – The last known market price as calculated from Bid, Ask and Last Trade prices quoted by Data Provider.
  Time to Expiration: – The time left until the position reaches the scheduled expiry time.
  In the Money: – see ”In the Money” section below
  Out of the Money: – see ”Out of the Money” section below
  

• In the Money Close Value Calculations

  Increase in close value

  The following parameters will always increase the early close value for positions currently “in the money”:
  

  Instrument	Type of Option	Parameter	Change
  All	All	Time to Expiry	Shortens
  High/Low	High	Market Price	Increases
  High/Low	Low	Market Price	Decreases
  One Touch	No Touch	Market Price	Moves away from touch value
  Boundary	In Bound	Market Price	Moves towards the middle of the boundary formed by the upper and lower target values
  Boundary	Out Bound	Market Price	Moves away from the edges of the boundary formed by the upper and lower target values

  Decrease in close value

  The following parameters will always decrease the early close value for positions currently “in the money”:
  

  Instrument	Type of Option	Parameter	Change
  High/Low	High	Market Price	Decreases
  High/Low	Low	Market Price	Increases
  One Touch	No Touch	Market Price	Moves towards the touch value
  Boundary	In Bound	Market Price	Moves towards the edge of the boundary formed by the upper and lower target values
  Boundary	Out Bound	Market Price	Moves towards either edge of the boundary formed by the upper and lower target values

• Out of the Money Close Value Calculations

  Increase in Close Value

  The following parameters will always increase the early close value for positions currently “out of the money”:
  

  Instrument	Type of Option	Parameter	Change
  High/Low	High	Market Price	Increases
  High/Low	Low	Market Price	Decreases
  One Touch	Touch	Market Price	Moves towards the touch value
  One Touch	No Touch	Market Price	Moves away from touch value
  Boundary	In Bound	Market Price	Moves towards the boundary formed by the upper and lower target values
  Boundary	Out Bound	Market Price	Moves towards the edges of the boundary formed by the upper and lower target values

  Increase in close Value

  The following parameters will always decrease the early close value for positions currently “out the money”:
  

  Instrument	Type of Option	Parameter	Change
  High/Low	High	Market Price	Decreases
  High/Low	Low	Market Price	Increases
  One Touch	Touch	Market Price	Moves away from touch value
  One Touch	No Touch	Market Price	Moves towards the touch value
  Boundary	In Bound	Market Price	Moves away from the boundary formed by the upper and lower target values
  Boundary	Out Bound	Market Price	Moves towards the edges of the boundary formed by the upper and lower target values

• Availability

  Close position functionality is not available at the following times
  

  1. For a certain time after the position is purchased (typically 5 minutes)
  2. From the no more trades time (x minutes before the expiry time when trading is not allowed)

  In addition 24option reserves the right to suspend the early closure functionality at any time.